Gold Fails to Rally Despite Inflation Data Supporting Rate Hike Bets

Gold futures closed flat on Friday despite a recent US inflation report that bolstered expectations for an interest rate hike by the Federal Reserve next week. The Labor Department's Bureau of Labor Statistics released data showing a modest increase in inflation, which could support the Fed's decision to raise rates.

The US inflation data showed a slight acceleration in prices, but it was not enough to spark significant gains in gold futures. Oil prices pulled back, offsetting some of the impact of the inflation report on gold. The SPDR Gold Shares ETF (GLD) closed at $147.45, essentially unchanged from Thursday's close.