Gold Heads for Weekly Loss on Middle East Tensions, Fed Rate Hike Fears
Gold (XAU/USD) is struggling to extend the previous day's gains and is on track for a weekly decline, as renewed Middle East hostilities fuel fears of energy-driven inflation and further Federal Reserve interest rate hikes.
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Gold prices are trading on the back foot on Friday, failing to build on Thursday's recovery. The precious metal is heading for a weekly loss as geopolitical risks and monetary policy concerns weigh on sentiment.
Escalating tensions in the Middle East have revived fears of a spike in energy prices, which could add to inflationary pressures. This, in turn, has strengthened expectations that the Federal Reserve may continue raising interest rates, a headwind for non-yielding assets like gold.
Source: FXStreet Forex News