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

Gold steadied after the US and Iran ramped up attacks over the weekend, as traders assess the likelihood of the Federal Reserve raising interest rates to contain inflation.

Gold trimmed its weekly loss as some investors bought on dips after the precious metal broke below a key price level, even as escalating war tensions kept interest rate hike bets alive.

Gold prices saw an increase on Friday, driven by escalating U.S.-Iran tensions. These geopolitical events fueled energy prices and inflation concerns, impacting market sentiment. Higher inflation fears reinforced expectations of potential U.S. interest rate hikes by the Federal…