Gold settles lower, records weekly loss

Gold prices settled lower on Friday and posted a weekly loss    

Gold and silver prices settled lower on Friday, posting weekly losses as higher oil prices driven by escalating US-Iran tensions fueled inflation concerns and reinforced expectations of tighter US monetary policy.

The decline came as the International Energy Agency (IEA) warned that the recent escalation between the US and Iran could undermine its forecast for a sizeable global oil surplus next year.

Markets are currently pricing in a roughly 69% chance of a Federal Reserve interest rate hike in September, according to the CME FedWatch Tool.

Minutes from the Fed's June meeting also showed a more hawkish tone amid persistent inflation concerns.

Gold traded at steep discounts in India this week, while demand in China remained stable after the central bank reported its largest monthly increase in gold reserves in more than two and a half years during June.

Gold futures for August delivery fell 0.65% to settle at $4,113.70 per ounce, ending the week down 0.29%.

Silver futures for July delivery declined 0.94% to $59.809 per ounce, posting a weekly loss of 1.38%.