Gold heads for weekly drop as Gulf attacks reinforce rate-hike bets

Spot gold held at $4,122.09 per ounce but was headed for an over 1% weekly drop as renewed US-Iran hostilities in the Gulf reinforced inflation concerns and lifted expectations of a US Federal Reserve rate hike. Markets now price a 64 percent chance of a September Fed rate hike, up from around 54 percent a week earlier, while HSBC cut its average gold price forecasts for 2026 and 2027 citing a hawkish shift in US monetary policy and a stronger dollar. Silver, platinum and palladium were also on track for weekly losses.