Gold Slips Ahead of US Inflation Report Amid Fed Rate Hike Bets

Gold prices are on track to record their third consecutive weekly loss as market expectations for a Federal Reserve interest rate hike strengthen. Despite edging higher on Friday, spot gold is down nearly 2% for the week so far and up 0.8% for the day at $4,351.97 per ounce.

The decline comes ahead of a key U.S. inflation report due later in the day. The U.S. Producer Price Index for final demand rose 0.4% in August, following an upwardly revised 0.1% gain in July. This led to traders nudging up bets that the Fed will raise interest rates at its meeting next week.

As a result, spot gold subsequently fell nearly 2%. U.S. gold futures for December delivery are down 0.3% at $4,393.10.