Gold slips as higher oil, US inflation data bolster Fed hike bets
Spot gold fell 0.6% to $3,997.39/oz by 0255 GMT, and December gold futures slipped 0.6% to $4,007.80. Bullion heads for a second straight monthly decline
Gold prices fell on Friday due to increasing oil prices, rising US inflation, and stronger signals that the Federal Reserve will raise interest rates. Spot gold dropped 0.6% to $3,997.39 per ounce, while December futures slipped 0.6% to $4,007.80. Analysts noted that gold's decline raises questions about support around the $4,000 level, and whether value buying can prevent further losses.
The US inflation data, showing a rise in September, supports the Fed's potential December rate hike, which increases the opportunity cost of holding non-yielding assets like gold. Oil prices surged on Friday, setting a fourth monthly gain and the highest since July due to heightened attacks by Iran-aligned Houthis on Saudi Arabia. Silver, platinum, and palladium also slipped, setting weekly and monthly declines.
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