(RTTNews) – Gold prices fell on Friday and headed for a weekly loss as escalating hostilities in the Middle East rekindled inflation and interest rate concerns.
Spot gold fell half a percent to $4,102.31 an ounce and was on track for a weekly loss of about 1.5 percent. US gold futures were down 0.7 percent at $4,110.76.
Bullion is in a consolidation mode as the tit-for-tat attacks between Iran and the US have pushed oil prices higher and made the Federal Reserve more likely to raise rates this year.
According to CME’s FedWatch tool, the market currently sees the odds of a September rate hike at 63 percent, up from about 54 percent a week ago.
Brent crude prices fell today but ended with a weekly gain of 6 per cent after the US attacked 90 Iranian targets and Tehran retaliated by targeting US bases in Bahrain, Jordan and Kuwait.
The US dollar fell after a US official said the US would continue “technical talks” with Iran and was committed to finding a solution to the conflict.
Fears of a return to full-scale war diminished when President Donald Trump claimed that Iran “wants to make a deal very badly”, but he does not know whether they are capable of making a deal.
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