Gold Heads For Steep Weekly Loss Amid Fed Rate Hike Bets

(RTTNews) - Gold prices traded higher on Friday in a likely technical rebound after falling for three straight sessions to the lowest level in more than a year.

Spot gold edged up 0.6 percent to $3,901.08 an ounce but was on track for a weekly loss of more than 4 percent on concerns over elevated oil prices, mounting inflation concerns and expectations that U.S. interest rates will stay higher for longer.

As inflation and rate-hike worries mount, investors will scrutinize the U.S. October PPI inflation data later in the day for additional clues on the Federal Reserve's rate trajectory.

The headline producer price inflation is seen rising 6.6 percent year-on-year in the month, while the core PPI is expected show an increase of 5.0 percent.

Federal Reserve Bank of New York President John Williams said on Thursday that U.S. inflation remains high and policymakers need to take actions over time to get it back to the 2 percent goal.

Separately, San Francisco Federal Reserve President Mary Daly indicated that additional tightening will be necessary as price pressures broaden beyond energy and goods into services.

The U.S. dollar was steady near a 19-month high while Eurozone government bond yields marched to multi-week highs as traders weighed the chance of a larger-than-usual Federal Reserve rate hike next month.

Brent crude price steadied above $96 a barrel as attacks on Saudi energy infrastructure and Hormuz shipping disruptions offset signs of rising crude output.

Middle East supply risks moved back into focus after Iranian officials reported an attack on Sirik in Hormozgan province amid conflict with the U.S.

Four oil tankers were hit by explosions in the Strait of Hormuz after the vessels had ignored warnings and entered what Iran's military considers restricted areas of the strategic waterway.

Iran's Revolutionary Guards claimed they targeted a U.S. early-warning radar in Bahrain in response to attacks on Iranian telecom tower in southern Hormozgan province.

Meanwhile, U.S. President Donald Trump downplayed the prospects of a comprehensive diplomatic solution with Iran, halted the negotiation process that Vice President Vance was advancing, and instead accepted a stalemate characterized by "no war, no talks."

Trump also indicated he may use military force against Iran if U.S. allies and ships are threatened.