Gold slipped on Friday, 30 October, as higher oil prices spurred inflation concerns and robust US inflation data strengthened the case for another Federal Reserve rate rise later this year.

Spot gold was down 0.6% at $3,997.39 per ounce by 0255 GMT, while US gold futures for December delivery dropped 0.6% to $4,007.80. Bullion was on track for a second consecutive monthly decline, with the $4,000 level now the key technical test for traders.

Why rates matter for gold

US inflation accelerated in September as consumers paid more for gasoline and other goods, supporting economists' expectations of an interest rate increase in December. Traders are now pricing in about a 75% chance of a December hike, according to the CME's FedWatch Tool. Higher yields and a stronger dollar raise the opportunity cost of holding gold, which pays no interest, and that pressure has weighed on bullion through October.

Annual core inflation in Japan's capital also well exceeded the central bank's 2% target in October, highlighting the breadth of price pressure. Elsewhere, spot silver slid 2.1% to $51.27 per ounce, platinum dropped 1.9% to $1,458.85 and palladium fell 2% to $986.08, with all three metals headed for weekly and monthly declines. Prices are snapshots at the stated times.

Sources: Reuters; TradingView.