Gold, Silver Rate Today Live Updates: Gold prices set for weekly decline as high inflation stokes rate hike fears

Data released during the week showed that US producer prices rose more than anticipated in May, resulting in the strongest annual increase in three-and-a-half years. Higher energy costs linked to the conflict in the Middle East contributed significantly to the rise.

According to CME Group’s FedWatch Tool, traders are currently assigning a 60% probability to a US interest rate hike by December.

Although gold is widely regarded as a hedge against inflation, higher interest rates generally reduce the appeal of the non-yield-bearing asset.