Gold is heading to end the week with a decline of 3.2%, which is its largest weekly loss since the beginning of June, with the rise in oil prices and renewed fears of inflation and a rise in US interest rates.
The yellow metal rose 0.5% in Friday trading to $3,988.20 an ounce, after touching its lowest level since the beginning of July. US futures for August delivery settled at $3,992.
The rise in oil by about 12% during the week, as a result of limited flows through the Strait of Hormuz and the escalation of the US-Iranian confrontation, was dominated by US inflation data that was lower than expected.
Traders see a 73% probability of raising interest rates in December. Silver also fell to $55.22, platinum to $1,605.62, and palladium to $1,244.86, and the three metals are heading for weekly losses. (Sky News)
