June 12 (Reuters) - Gold prices edged lower on Friday and
were on track for a weekly loss amid inflation concerns and
potential U.S. Federal Reserve interest rate hikes.
FUNDAMENTALS
* Spot gold was down 0.3% at $4,200.82 per ounce, as
of 0101 GMT, and was set for a weekly loss of 2.8%. U.S. gold
futures for August delivery rose 2.6% to $4,222.10.
* Gold fell to an over six-month low on Thursday before
closing higher at $4,219.69 as U.S. President Donald Trump
called off planned military strikes on Iran and signalled an
imminent peace deal.
* President Donald Trump on Thursday said the United States and
Iran could sign a peace deal as soon as this weekend that would
reopen the Strait of Hormuz to shipping, but Iran countered that
it had not reached a final decision on an agreement.
* U.S. producer prices increased more than expected in May,
leading to the largest annual gain in 3-1/2 years as the Middle
East conflict drove up the cost of energy products.
* Traders are currently pricing a 60% chance of a U.S. rate
hike in December, according to the CME Group's FedWatch tool.
* While gold is seen as a hedge against inflation, higher
interest rates tend to weigh on the non-yielding metal.
* DBS Group, Singapore's biggest bank by assets, said on
Thursday it will offer tokenised physical gold to retail
customers as demand for the precious metal grows and the
city-state pushes to become a gold trading hub.
* Spot silver fell 0.4% to $67.11 per ounce, platinum
gained 0.3% to $1,724.45, while palladium rose 1%
to $1,281.75.
DATA/EVENTS (GMT)
0600 UK GDP Est 3M/3M, MM, YY Apr
0600 UK Services MM, YY Apr
0600 UK Manufacturing Output MM Apr
1400 US U Mich Sentiment Prelim Jun
(Reporting by Pablo Sinha in Bengaluru; Editing by Rashmi Aich)
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