Gold on Brink of Third Straight Weekly Decline Amid Interest Rate Hike Fears

Gold prices are on track for a third consecutive weekly decline despite a modest gain on Friday. Spot gold has fallen more than 2% so far this week, with the US$4,326.88 per troy ounce price at 00:20 GMT.

The pressure on gold intensified after data released on Thursday showed that the US Producer Price Index (PPI) for final demand rose 0.4% in August, higher than the 0.1% increase recorded in July.

Investors are awaiting key US inflation data due on Friday, which could determine the direction of the US central bank's monetary policy and further limit the upside potential for gold prices in the short term.