Reuters_ Gold prices slipped on Friday and were on track for their biggest weekly decline in more than four months, as rising oil prices and robust US economic data bolstered expectations that the Federal Reserve (the US central bank) will keep interest rates higher for longer.
Spot gold fell 0.1% to $4018.69 per ounce by 00:36 GMT, hitting its lowest level since August 3. The metal has dropped 3.4% so far this week, recording its largest weekly decline since June.
US gold futures for December delivery fell 0.6% to $4033.70.
Oil prices rose nearly 4% to a five-month high on Thursday after Houthi attacks on Saudi Arabia raised fears of further energy supply disruptions.
Rallies in energy prices reinforce expectations that the US Fed will keep interest rates elevated for a longer period, thereby increasing the opportunity cost of holding non-yielding gold.
The number of Americans filing new claims for unemployment benefits dropped to its lowest level in nearly 57 years last week, reflecting a modest rebound in job growth in October.
Attention is now focused on the Federal Reserve's monetary policy meeting scheduled for October 27-28 and on personal consumption expenditures (PCE) data due next week.
Traders see no more than a 7% chance that the US central bank will raise interest rates next week, but expectations for a rate hike in December remain at 81%.
Among other precious metals, spot silver fell 0.1% to $54.46 per ounce, platinum declined 0.4% to $1563.67, and palladium dropped 0.5% to $1051.00. All three metals were on track for weekly losses.
