Rising oil prices and inflation data strengthen interest rate hike expectations, putting pressure on gold prices

Due to the rise in oil prices and strong U.S. inflation data, market expectations for the Federal Reserve to raise interest rates again later this year have increased, leading to a decline in gold prices on Friday.

Tim Waterer, Chief Market Analyst at KCM Trade, stated that the decline in gold prices puts the technical support around the $4,000 level to the test. The acceleration of U.S. inflation in September confirms expectations that the Federal Reserve will raise interest rates in December.