Gold slips as oil rebound fuels inflation concerns
Bullion remained on course for a weekly gain, while traders put the probability of a December US rate increase at 68%.
Spot gold declined 0.6% to US$4,063.39 per ounce at 0248 GMT on Nov 6, as rising oil prices renewed inflation concerns ahead of US employment figures. Despite the decline, bullion was 4% higher for the week so far.
December-delivery US gold futures lost 1%, reaching US$4,072.90. Oil advanced more than 1%, although expectations of an easing in the Iran conflict following the US election result left crude heading for a sharp weekly loss.
Ilya Spivak, head of global macro at Tastylive, attributed pressure on gold to the inflationary effects of oil's recovery. He said markets were still absorbing the US midterm election outcome, keeping bullion largely within a trading range.
The US non-farm payrolls figures were due at 1330 GMT, with remarks from Fed vice-chair Michelle Bowman also scheduled. CME's FedWatch tool put the likelihood of a December rate increase at 68%. Two Fed officials had argued for gradual, modest increases on Thursday to address inflation above target.
Goldman Sachs cut its end-2026 bullion forecast on Thursday, taking it to US$4,150 per ounce from US$4,650. The bank cited the Fed's increasingly hawkish position in recent months.
Other precious metals were also heading for weekly gains. Spot silver advanced 0.3% to US$51.91 and platinum rose 0.4% to US$1,523.63, while palladium slipped 0.2% to US$1,029.22.
