Gold prepares for biggest weekly gain in 7 months

Gold prices have headed for their biggest weekly rise in 7 months, driven by expectations that the conflict between Israel and Hamas will deepen.

Gold is on track for its largest weekly gain in nearly seven months as Israel signals a ground operation.

Gold prices are preparing to record their biggest weekly increase since the week ending March 17, with a rise of 2.4 percent.

Israel, which has been conducting heavy airstrikes on Gaza following Hamas's attacks, is signaling preparations for a ground operation. The Israeli military has asked the United Nations to evacuate its personnel from Northern Gaza. In a statement, the United Nations noted that more than 1.1 million Palestinians live in the area indicated by Israel, stating, "The United Nations considers it impossible for such an operation to take place without devastating humanitarian consequences."

On the other hand, gold in spot markets declined on Thursday following the higher-than-expected US CPI data released yesterday. Following the data, concerns that the US Federal Reserve (Fed) could implement further monetary tightening have reignited.