Gold Faces Worst Week in 4 Decades Amid Iran War, Rate-Cut Bets Diminish

• Gold is set for its biggest weekly loss since 1983, driven by the Middle East conflict boosting energy prices and reducing interest-rate cut expectations.
• Bullion dropped 2.1% as the dollar and bond yields rallied following reports of increased US military presence in the Middle East.
• Traders now see a 50% chance of a rate hike by October, as a prolonged conflict could fuel global inflation, negatively impacting gold.
• Gold has fallen every week since the US and Israel attacked Iran, with investors selling to cover losses and gold-backed ETFs seeing outflows.
• Despite recent declines, gold is still up 5% this year, having touched a record high in January, supported by investor enthusiasm and central-bank buying.