Gold set for biggest weekly drop since early June on inflation, rate-hike worries

Gold prices saw an increase on Friday, driven by escalating U.S.-Iran tensions. These geopolitical events fueled energy prices and inflation concerns, impacting market sentiment. Higher inflation fears reinforced expectations of potential U.S. interest rate hikes by the Federal Reserve. While gold is a hedge against inflation, higher rates typically pressure the non-yielding metal. Other precious metals like silver, platinum, and palladium also experienced weekly losses.