Gold prices slipped on Friday as higher oil prices and robust U.S. inflation data strengthened the case for another Federal Reserve interest rate hike later this year.
Spot gold was down 0.9% at $3,982.85 per ounce by 0740 GMT, while U.S. gold futures for December delivery dropped 1% to $3,992.50. Bullion was headed for a weekly fall and a second consecutive monthly decline.
Higher interest rates in the U.S. increase the opportunity cost of holding non-yielding bullion, making gold less attractive to investors.
Spot silver slid 3.1% to $50.74, platinum dropped 3.3% to $1,439.05 and palladium fell 2.3% to $982.50. All three metals were headed for weekly and monthly declines.
