Gold headed for a weekly decline as a war-driven surge in US inflation fuels expectations for higher interest rates.

Bullion was trading around $4,660 an ounce, down more than 1% since Friday. US data released this week showed wholesale inflation accelerated to the fastest pace since 2022 in April, while the consumer price index rose the most since 2023, and Treasury 10-year yields neared the highest since July. That’s negative for gold, which pays no interest.