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

Gold is set for its biggest weekly drop since early June, pressured by a stronger U.S. dollar and rising global inflation fears pushing interest rates higher. Geopolitical tensions following escalated U.S. strikes on Iran have lifted Brent crude about 16% for the week, while bullion has fallen roughly 25% since the conflict began. Traders now price around a 58% chance of a U.S. rate hike at the September FOMC meeting, with Fed officials signalling openness to further tightening if inflation persists.