Gold Heads for Weekly Fall as Hormuz Strikes Raise Fed-Hike Bets

Gold was on track for its largest weekly loss since early June as renewed Middle East hostilities boosted risks that the US Fed may need to raise interest rates to contain inflation. The implied policy tightening pressure is a headwind for non-yielding gold, contributing to the sharp weekly decline.

Analysis

Gold was on track for its largest weekly loss since early June as renewed Middle East hostilities boosted risks that the US Fed may need to raise interest rates to contain inflation. The implied policy tightening pressure is a headwind for non-yielding gold, contributing to the sharp weekly decline.