Gold Slips as Oil Prices Soar Ahead of Fed Meeting

Gold prices slipped further on Friday, shedding 0.4% to $4,030.09 per ounce as Brent crude surged above $100 a barrel for the first time since May. This increase in oil prices has heightened concerns about inflation and higher interest rates ahead of next week's Federal Reserve meeting.

Bullion was still on track for a small weekly gain of 0.4%, but its appeal as a non-yielding asset is diminishing in a high-interest-rate environment, said GoldSilver Central Managing Director Brian Lan. He added that gold has been trading between $3,980 and $4,170 for weeks, with big buyers stepping in to support the metal whenever prices hit around $4,000.

The Federal Reserve's next move is being closely watched by markets, with an 81% chance of a hike in September, according to the CME FedWatch Tool. However, the central bank is widely expected to keep rates unchanged at its upcoming meeting.