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 fell as much as 0.8% to near $4,615 an ounce, and is down around 2% 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.