File photo: Spot gold was down 0.5% at $4,191.17 per ‌ounce, as of 0252 GMT, and was set for a weekly loss of 3.2%. | Photo Credit: -

Gold prices fell on Friday and were on track ⁠for a weekly loss, pressured by concerns around inflation and potential US Federal Reserve interest rate hikes.

Spot gold was down 0.5% at $4,191.17 per ‌ounce, as of 0252 GMT, and was set for a weekly loss of 3.2%. US gold futures for ‌August delivery rose 2.4% to $4,212.70.

Gold fell to an over ‌six-month ⁠low on Thursday before closing higher at $4,219.69, as US ⁠President Donald Trump called off planned military strikes on Iran and signalled an imminent peace deal.

The price is “completely being driven by geopolitical headlines,” said Edward ​Meir, an analyst at Marex.

“The ‌markets will be paying attention to any signal that the Fed could raise rates, and if they hint at moving in that direction, I think gold could probably break ‌below the $4,000 mark.”

Gold has lost about 20% since the Iran ​war began, on fears that rising energy costs could spur inflation, prompting central banks to keep interest rates ⁠higher and raising the opportunity cost of holding the non-yielding metal.

US producer prices increased more than expected in May, leading to ‌the largest annual gain in 3-1/2 years as the West Asia conflict drove up the cost of energy products.

Traders are currently pricing a 60% chance of a US rate hike in December, according to the CME Group’s FedWatch tool.

Donald Trump on Thursday said the United States and Iran could sign a ‌peace deal as soon as this weekend that would reopen the Strait ​of Hormuz to shipping, but Iran countered that it had not reached a final decision on an agreement.

Meanwhile, ⁠holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, fell ⁠about 0.3% to 923.89 tonnes on Wednesday.

Spot silver fell 0.4% to $67.10 per ounce, and platinum gained 0.7% ‌to $1,731.40, with both metals headed for a weekly loss, while palladium rose 1.6% to $1,289.33, and gained about 5% for ​the week so far.

Published on June 12, 2026