Gold sees first weekly drop in three weeks, Middle East tensions persist

Gold prices fell to around $3356 per ounce on Friday, on track for their first weekly drop in three weeks as investors sold bullion to offset losses elsewhere amid the escalating Israel-Iran conflict. International bullion futures dipped 1.3% while MCX domestic bullion futures eased 0.6% to Rs 98725 per 10 grams. Tensions remained high as Israel intensified strikes on Tehran after an Iranian missile reportedly hit a major hospital in Israel. Meanwhile, the US dollar index slipped slightly to 98.2 but stayed firm for the week, supporting safe-haven demand. Fed Chair Jerome Powell flagged that inflation might rise in the coming months due to Trump?s tariffs, while the Fed lowered its growth forecast and signaled two rate cuts next year. Traders now await fresh cues from US manufacturing and leading economic data due Friday.

Powered by Commodity Insights