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

Gold weakened on Friday, with spot bullion down 0.5% to $4,000.54 an ounce and December US futures losing 0.5% to $4,010.10, Business Recorder reported. The metal was heading for a second monthly decline in a row.

September US inflation rose as fuel and other goods became more expensive, reinforcing expectations of a Federal Reserve rate increase in December. Traders put the probability of a hike at about 75%, while firmer oil prices added to inflation concerns and reduced gold’s appeal as a non-yielding asset.

Oil was on course for a fourth monthly advance after a tanker attack in the Strait of Hormuz raised supply concerns. Silver, platinum and palladium also fell, while Tokyo’s core inflation exceeded the Bank of Japan’s 2% target in October.