Gold is heading for a weekly decline amid expectations of a US interest rate hike

There was little change in gold prices at the beginning of today’s trading, at a time when markets are assessing the risks of inflation resulting from the latest military escalation between the United States and Iran, and renewed expectations of raising interest rates pushed the metal, which does not generate a return, towards a weekly decline. By 0047 GMT, the price of gold in spot transactions stabilized at $4,122.09 per ounce, heading towards a weekly loss of more than one percent.

US gold futures for August delivery fell 0.2 percent to $4,131.50.

According to the CME’s Fed Watch tool, markets see a 64 percent probability of raising interest rates in September, compared to about 54 percent a week ago.

The minutes of the Federal Reserve meeting held in June were released this week, and showed growing concerns among monetary policy makers about rising inflation, while a few saw that there was justification for raising interest rates.

As for other precious metals, silver fell in spot transactions 0.1 percent to $59.94 per ounce, platinum rose 0.2 percent to $1,614.22, and palladium increased 0.4 percent to $1,252.75. The three metals are heading to suffer a weekly loss.