Gold rebounded on Friday but was set for its biggest weekly loss in six, as renewed U.S.-Iran clashes lifted oil prices, stoked inflation concerns and strengthened expectations that interest rates could stay higher for longer.
- Spot gold XAU= gained 0.5% to $3,988.57 per ounce by 0103 GMT, having touched its lowest since July 1 earlier in the session. U.S. gold futures GCcv1 for August delivery were steady at $3,992.70.
- Iran and the United States exchanged intensifying fire on Thursday in a week-long escalation that has largely unravelled last month's truce.
- Oil prices have jumped about 12% so far this week as the escalating U.S.-Iran conflict stoked supply concerns. O/R
- Non-yielding gold typically struggles when interest rates are high because investors favour investments that offer better returns. The metal is down over 3% for the week so far.
GLD•
