Baghdad: Gold prices have experienced a significant drop, falling by 1.5% as global gold markets closed with the price of an ounce reaching $2,100. This marks a notable weekly loss for the precious metal.

According to National Iraqi News Agency, the decline in gold prices is largely attributed to the recent rise in crude oil prices and increasing tensions between the United States and Iran. These developments have intensified concerns regarding the US Federal Reserve's continued tight monetary policy. The exchange of attacks between US and Iranian forces last week, coupled with the rising oil prices, has heightened investor fears of increasing inflation.

As a result, market analysts are now predicting a 60% probability that the US Federal Reserve will raise interest rates in September. Investors are keenly observing the upcoming US inflation data, scheduled for release next Tuesday, and are anticipating remarks from Federal Reserve official Kevin Warsh, which may provide further insights into the future direction of US monetary policy.

In related developments, the minutes from the US central bank's June meeting have uncovered growing concerns about inflation. Several policymakers expressed support for raising interest rates, even before the decision was made to keep them unchanged, reflecting the ongoing debate within the Federal Reserve regarding the appropriate response to inflationary pressures.