Gold heads for steepest weekly loss in four months

Spot gold fell 0.2% to $4,016.27 per ounce, bringing its weekly decline to 3.5%. Prices touched their lowest level since July 20 during the session. Meanwhile, US gold futures for December delivery dropped 0.7% to $4,030.40.

Escalating tensions in the Middle East have pushed oil prices higher, renewing concerns about global inflation, while expectations that the Federal Reserve (Fed) could keep interest rates elevated for an extended period continue to weigh on gold. Investors are closely monitoring the Fed's October 27–28 meeting and the upcoming Personal Consumption Expenditures (PCE) inflation data. Analysts view the $4,000-per-ounce level as critical for gold's short-term price direction.