Gold heads for second weekly loss on rate rise expectations

Spot gold was down 2.3% for the week at $4,227.17/oz, heading for a second consecutive weekly loss as expectations of prolonged elevated interest rates weighed on the non-yielding metal. US producer prices rose more than expected in May and consumer inflation exceeded 4%, with traders pricing in a 57% chance of a US rate hike by December. UBS lowered its gold outlook, warning prices could fall toward $3,850-4,000/oz in the near term, while oil prices dropped over 3% on potential US-Iran de-escalation news.