Gold dips as US inflation data bolsters expectations of Federal Reserve rate hike

Gold edged lower, trading near $4,340 an ounce after falling for a third consecutive week following hotter-than-expected US inflation data released on Friday.

The core consumer price index rose 0.3% in August from the previous month, increasing pressure on the Federal Reserve to implement its first rate hike in three years.

Traders have priced in an 88% probability of a rate increase in September, while surging oil prices and geopolitical tensions in the Middle East provide additional inflationary pressures.