Gold heads for weekly loss on inflation and rate hike concerns

Gold prices slipped on Friday, putting the metal on track for a weekly decline of 3.2% as U.S. inflation concerns and expectations of a possible interest rate increase weighed on the market. By 02:52 GMT, spot gold was down 0.5% at $4,191.17 per ounce, while U.S. gold futures for August delivery traded 0.4% higher at $4,212.70. Edward Meir, an analyst at Marex, said prices were being shaped by geopolitical news and warned that gold could fall below $4,000 if the U.S. Federal Reserve signals a rate hike. U.S. producer prices posted their sharpest annual rise in three and a half years in May, driven by higher energy costs. According to CME FedWatch data, markets are pricing in a 60% probability of a rate increase in December. Meanwhile, peace talks between the United States and Iran were reported to be ongoing. Silver fell 0.4%, while platinum gained 0.7% and palladium rose 1.6%.