Gold prices fell on Friday, and were poised for a weekly loss, as tensions in the Middle East dampened hopes for a U.S.-Iran peace deal amid rising inflation and interest rate-hike fears.
Spot gold was down 0.5% at $4,452.20 U.S. per ounce, as of 0225 GMT. It has fallen about 1.8% for the week so far.
U.S. gold futures for August delivery fell 0.6% to $4,478.50.
The Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon and Israel said it would not withdraw troops from the country, undermining U.S. President Donald Trump’s efforts to halt fighting there to forge peace with Tehran.
Markets in the States are pricing in a Fed rate hike before year-end, with a 51% chance of a move by December.
Investors are now awaiting the May U.S. nonfarm payrolls data, due later in the day, to gauge the Fed’s monetary policy path.
Spot silver fell 1.4% to $72.89 U.S. per ounce, platinum dropped 1.1% to $1,878.68, and palladium slid 1.7% to $1,298.45. All metals were headed for a weekly loss.
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