{"id":128349,"date":"2026-06-12T12:28:46","date_gmt":"2026-06-12T08:28:46","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=128349"},"modified":"2026-06-12T12:29:00","modified_gmt":"2026-06-12T08:29:00","slug":"gold-heads-for-second-weekly-loss-as-ppi-hits-3-5-year-high-iran-peace-deal-weekend-hopes-limit-the-damage","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/gold-heads-for-second-weekly-loss-as-ppi-hits-3-5-year-high-iran-peace-deal-weekend-hopes-limit-the-damage\/06\/12\/market-updates\/","title":{"rendered":"Gold Heads for Second Weekly Loss as PPI Hits 3.5-Year High: Iran Peace Deal Weekend Hopes Limit the Damage"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gold falls:<\/strong> Spot gold dropped 0.7% to $4,182.44 per ounce \u2014 on track for a weekly loss of more than 3%.<\/li>\n\n\n\n<li><strong>Second straight weekly decline:<\/strong> Persistent inflation fears and rate hike bets continue to dominate.<\/li>\n\n\n\n<li><strong>Thursday&#8217;s wild ride:<\/strong> Gold hit a six-month low before surging 3.5% after Trump announced a potential weekend peace deal signing.<\/li>\n\n\n\n<li><strong>Iran deal uncertainty remains:<\/strong> Iranian officials said no final agreement had been reached, keeping uncertainty alive.<\/li>\n\n\n\n<li><strong>Oil fell sharply on Trump&#8217;s comments:<\/strong> Easing energy prices briefly alleviated inflation concerns for bullion.<\/li>\n\n\n\n<li><strong>PPI shocks to the upside:<\/strong> U.S. producer prices posted their largest annual increase in three-and-a-half years in May, driven by higher energy costs.<\/li>\n\n\n\n<li><strong>60% December Fed hike probability:<\/strong> The hot PPI data prompted traders to further increase rate tightening bets.<\/li>\n\n\n\n<li><strong>Higher-for-longer headwind:<\/strong> Rising rates increase the opportunity cost of holding non-yielding gold.<\/li>\n\n\n\n<li><strong>Dollar flat:<\/strong> The DXY traded largely unchanged in Asian hours after Thursday&#8217;s volatile session.<\/li>\n\n\n\n<li><strong>Silver slips:<\/strong> Spot silver fell 0.8% to $66.80 per ounce.<\/li>\n\n\n\n<li><strong>Platinum gains:<\/strong> Spot platinum rose 0.5% to $1,731.08 per ounce.<\/li>\n\n\n\n<li><strong>Copper surges:<\/strong> LME copper climbed 1.6% to $13,706.33 per ton; U.S. copper futures edged up 0.2%.<\/li>\n<\/ul>\n\n\n\n<p>Gold prices fell on Friday and headed for a second straight weekly loss, pressured by persistent inflation concerns and growing expectations of a U.S. Federal Reserve interest rate hike, while renewed hopes for a U.S.-Iran peace agreement capped the slide.<\/p>\n\n\n\n<p>Spot gold was last down 0.7% at $4,182.44 an ounce by 02:18 ET (06:18 GMT), set to fall more than 3% for the week.<\/p>\n\n\n\n<p>U.S. gold futures for August delivery jumped 2.2% to $4,203.87 on renewed Middle East peace hopes.<\/p>\n\n\n\n<p>The metal dropped to a six-month low on Thursday, but ended 3.5% higher after U.S. President Donald Trump said Washington and Tehran could sign a peace agreement as soon as this weekend \u2014 potentially reopening the Strait of Hormuz and easing concerns over global energy supplies.<\/p>\n\n\n\n<p>However, Iranian officials said no final agreement had yet been reached, leaving uncertainty over the regional outlook.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">PPI Seals the Rate Hike Case<\/h2>\n\n\n\n<p>Broader market sentiment improved on hopes for a diplomatic breakthrough. Oil prices fell sharply after Trump&#8217;s comments, while global equity markets rallied.<\/p>\n\n\n\n<p>Gold \u2014 often viewed as a hedge against inflation and geopolitical uncertainty \u2014 has struggled in recent weeks as investors increasingly focus on the prospect of tighter monetary policy. Higher interest rates raise the opportunity cost of holding non-yielding bullion, reducing its attractiveness relative to interest-bearing assets.<\/p>\n\n\n\n<p>U.S. economic data on Thursday reinforced concerns that inflationary pressures remain elevated. Producer prices rose more than expected in May, posting the largest annual increase in three-and-a-half years as higher energy costs filtered through the economy.<\/p>\n\n\n\n<p>The data prompted traders to increase bets that the Federal Reserve could resume policy tightening later this year, with markets now pricing roughly a 60% chance of a rate increase by December.<\/p>\n\n\n\n<p>The U.S. Dollar Index traded largely flat in Asian hours after dipping 0.1% in volatile trading on Thursday.<\/p>\n\n\n\n<p>Among other precious metals, spot silver fell 0.8% to $66.80 per ounce, while platinum rose 0.5% to $1,731.08 per ounce.<\/p>\n\n\n\n<p>Benchmark copper futures on the London Metal Exchange climbed 1.6% to $13,706.33 a ton, while U.S. copper futures edged up 0.2% to $6.41 a pound.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Gold falls: Spot gold dropped 0.7% to $4,182.44 per ounce \u2014 on track for a weekly loss of more than 3%. Second straight weekly decline: Persistent inflation fears and rate hike bets continue to dominate. Thursday&#8217;s wild ride: Gold hit a six-month low before surging 3.5% after Trump announced a potential weekend peace &hellip;<\/p>\n","protected":false},"author":9,"featured_media":122477,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-128349","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=128349"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128349\/revisions"}],"predecessor-version":[{"id":128350,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128349\/revisions\/128350"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/122477"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=128349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=128349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=128349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}