PRECIOUS METALS | Gold Faces Largest Weekly Drop in Six Years Amid Middle East Conflict

Gold is experiencing its most significant weekly decline in six years as the Middle East conflict drives energy prices higher and dampens expectations for interest rate cuts. According to Jin10, spot gold hovered around $4,650 per ounce on Friday, marking a weekly drop of over 7%, the largest since March 2020. The surge in oil and natural gas prices, triggered by the conflict, has intensified inflation concerns, reducing the likelihood of interest rate cuts by central banks, which negatively impacts gold, an asset that does not yield interest. Gold has been on a downward trend for several weeks following the U.S.-Israel attack on Iran late last month.