Gold Prices Soften on Prospects of Fed Rate Hikes

Gold prices softened on Friday after falling 2% in the previous session, as Brent crude's surge above $100 a barrel stoked inflation concerns and strengthened the case for higher interest rates ahead of the Federal Reserve policy meeting next week.

The spot gold price eased 0.2% to $4,037.29 per ounce by 0702 GMT, with prices down more than $130 from a two-week high hit on Wednesday.

According to GoldSilver Central Managing Director Brian Lan, 'In the short term, we expect more volatility... gold has been trading between $3,980 all the way to about $4,170 and has been stuck in this way for weeks.'