Gold heads for weekly drop as Gulf attacks reinforce rate-hike bets

Gold prices edged higher on ​Friday as the dollar softened, but were on track for a weekly ‌decline on concerns that escalating US-Iran tensions could fuel inflation and keep the US Federal Reserve on a hawkish monetary policy path. Spot gold was up 0.2% at $4,128.92 per ounce, as of 0303 GMT, and headed ​for an over 1% weekly fall. U.S. gold futures for August delivery were ​steady at $4,139.50. The dollar was at a one-week low, making greenback-priced bullion more ⁠affordable for holders of other currencies. “Gold is in consolidation mode today following yesterday’s gains, ​with traders hesitant to commit to further upside amid the prevailing uncertainty over US-Iran relations,” said ​Tim Waterer, chief market analyst at KCM Trade.