Gold Headed For Weekly Loss As Iran War Rages

(RTTNews) - Gold edged up on Friday but was on track for the first weekly decline in more than a month, pressured by a stronger U.S dollar and fading rate-cut prospects.

Spot gold edged up by 0.4 percent to $5,102.17 an ounce while U.S. gold futures were up 0.6 percent at $5,107.79.

The dollar declined today but was set for its steepest weekly gain in a year as the Iran war unleashed a fresh wave of uncertainty which markets typically dislike.

A cautious undertone prevailed in financial markets as the Middle East war unleashed by U.S.-Israeli attacks on Iran swelled outwards to Cyprus, Sri Lanka, Turkey and Azerbaijan, raising concerns about the outlook for trade, prices and investment.

The U.S. military said it struck an Iranian vessel described as a "drone carrier." Iran said that new inventions are on the wary and it is ready for a long war.

The escalating West Asia conflict resulted in a sharp spike in oil and gasoline prices, threatening to set off convulsions in the world economy.

As rate cut expectations fade, investors now eye U.S. retail sales, jobs and wage data later in the day for further direction.