Gold Prices Soften as Brent Crude Surges Past $100 Per Barrel

Gold prices slipped on Friday as Brent crude breached the US$100 per barrel threshold for the first time since May, fueling inflation concerns and strengthening the case for higher interest rates.

The spot gold price eased by 0.1% to US$4,042.77 per ounce, while US gold futures for August delivery were also 0.1% lower at US$4,045.60.

Bullion was on track for a small weekly gain of 0.6%, but the rise in Brent crude's price has stoked inflation concerns and may reduce the appeal of non-yielding gold.

The US Federal Reserve is widely expected to keep rates unchanged next week, although traders are pricing in an 81% chance of a hike in September.