Gold prices fell on Friday and are heading for their biggest weekly decline in more than four months. Rising oil prices and strong U.S. economic data have increased expectations that interest rates will remain high for longer.
Spot gold dropped 0.1% to $4,018.69 per ounce by 00:36 GMT, reaching its lowest level since August 3. Gold has fallen 3.4% since the start of the week and is on track for its biggest weekly loss since June.
Higher oil prices are raising concerns about inflation, which could lead the U.S. Federal Reserve to keep interest rates elevated for a longer period. This puts pressure on gold because it does not pay interest or generate regular income for investors.
Other precious metals also declined on Friday. Silver fell 0.1% to $54.46 per ounce, platinum dropped 0.4% to $1,563.67, and palladium slipped 0.5% to $1,051 per ounce.
All three metals are also heading for weekly losses as pressure continues across precious metals markets.