FX.co ★ Gold Poised for Weekly Loss

Gold traded near $4,650 an ounce on Friday and was on track for a weekly loss of more than 1%, pressured by accelerating US inflation that raised concerns the Federal Reserve may need to keep interest rates elevated or even increase them. Data earlier in the week showed US producer prices in April rising at their fastest pace since 2022, while consumer prices recorded their largest gain since 2023. These inflationary pressures have been driven largely by the prolonged conflict in the Middle East and the near-shutdown of the critical Strait of Hormuz, which has severely disrupted global energy shipments. Markets have now fully priced out the possibility of a Fed rate cut this year, with some traders increasingly factoring in the risk of a rate hike by December. Meanwhile, President Trump met with Chinese President Xi Jinping to discuss efforts to keep the Strait of Hormuz open and safeguard energy trade. Separately, India further tightened gold import regulations as authorities stepped up measures to support the rupee.