Gold slips below $4,000 on rising oil prices, firm US inflation data

Gold dropped below $4,000 an ounce on Friday as stronger US inflation figures and rising oil prices strengthened expectations of a Federal Reserve rate increase. Mettis Global reported spot gold at $3,986.01 an ounce, down 1.82% as of 12:13 pm PST.

US inflation accelerated in September, with higher gasoline and other goods costs supporting expectations of a December rate rise. Traders put the likelihood of an increase next month at about 75%, according to the CME FedWatch Tool; higher rates raise the cost of holding non-yielding gold. Oil was also heading for a fourth straight monthly gain amid supply concerns, while silver, platinum and palladium each fell and were set for weekly and monthly losses.