Gold declines on expectations of a US interest rate hike

Gold continued its decline on Friday, following a 2% drop in the previous session, as the return of Brent crude oil prices above $100 per barrel fueled inflation concerns and bolstered expectations of a US interest rate hike ahead of the Federal Reserve’s monetary policy meeting next week.

Spot gold prices fell 0.4% to $4,030.09 per ounce, retreating more than $130 from its two-week high reached on Wednesday. US August gold futures declined 0.4% to $4,033.20, with gold on track to post a slight weekly gain of 0.4%.