Gold heads for weekly loss as investors unwind inflation-fuelled rally
GLD•Other precious metals also weaken
On the geopolitical front, Washington on Thursday threatened to maintain a naval blockade of Iran indefinitely, ratcheting up economic pressure on Tehran as ceasefire talks have floundered.
In other metals, spot silver XAG= slipped 0.9% to $63.88 per ounce.
Platinum XPT= slipped 0.4% to $1,711.10, while palladium XPD= inched 0.1% higher at $1,308.25, both touching their lowest levels since August 4 earlier in the session. Both metals were headed for a weekly drop.
Gold slips as profit-taking sets in
Gold prices slipped on Friday and were headed for a weekly loss as investors locked in profits after mild U.S. inflation data propelled bullion to its highest level in more than two months and weakened the case for a near-term Federal Reserve rate hike.
Spot gold XAU= was down 0.6% at $4,324.39 per ounce, as of 0538 GMT. U.S. gold futures GCcv1 for December delivery slid nearly 1% to $4,379.20.
Bullion climbed to its highest point since June 5 on Thursday, before settling 1.3% lower and setting it on track for a weekly loss.
Rate-hike expectations ease after softer U.S. data
The non-yielding metal got a boost after an unexpected drop in U.S. July nonfarm payrolls last week, followed by softer inflation data this week, sharply reducing expectations of a rate hike next month.
