Gold Heads for Weekly Drop as Inflation Fuels Rate-Hike Bets

Gold headed for a modest weekly decline as a war-driven surge in US inflation fueled expectations for higher interest rates.

Bullion was steady near $4,655 an ounce, and is down 1.3% since last Friday. US wholesale inflation accelerated to the fastest pace since 2022 in April, while the consumer price index rose the most since 2023. The dollar strengthened and 10-year Treasury yields jumped, negatives for gold, which pays no interest and is priced in the US currency.