20.03.202615:08:35UTC+00Gold Set for Biggest Weekly Drop Since 1983

Gold slumped 2% to $4,570 per ounce on Friday, putting it on track for its steepest weekly drop since 1983, as escalating tensions in the Middle East drove energy prices sharply higher and shattered expectations for imminent interest rate cuts. The sell-off accelerated after reports that the Pentagon is sending three warships and thousands of Marines to the region, prompting traders to assign a 50% probability to a Federal Reserve rate hike by October amid concern over persistent inflation. The traditional safe-haven asset has now fallen for a fourth consecutive week following last month’s US-Israel strikes on Iran, weighed down by rising Treasury yields, a firmer dollar, and profit-taking as investors closed positions to cover losses in other markets. Earlier this week, the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan all left policy rates unchanged but signaled they stand ready to tighten further if inflationary pressures fail to ease.