Gold slips as higher oil, US inflation data bolster Fed hike bets

Gold prices declined on Friday as oil prices surged and U.S. inflation data exceeded expectations, increasing the likelihood of a Federal Reserve interest rate hike. Spot gold fell 0.9% to $3,982.85 per ounce, while US gold futures for December delivery dropped 1% to $3,992.50. The decline posed questions about gold's support around the $4,000 level, with dip buying failing to prevent further losses.

Analysts noted that recent US macro data was supportive of a potential December hike, exacerbating gold's weakness in an inflationary environment. US inflation rose in September due to higher gasoline and other goods prices, reinforcing expectations of a December rate increase. Oil prices rose on Friday, nearing a fourth consecutive monthly gain, following an attack on a tanker in the Strait of Hormuz due to the US-Israeli war on Iran.

Core inflation in Japan's capital surpassed the central bank's 2% target in October, indicating rising price pressures. Silver, platinum, and palladium all declined, with silver sliding 3.1% to $50.74, platinum dropping 3.3% to $1,439.05, and palladium falling 2.3% to $982.50.