LONDON: Gold prices edged lower on Friday as slightly weaker US inflation and consumer spending data did little to dampen expectations of an interest rate hike in December.

Spot gold was down 0.3 per cent at $1,283.36 per ounce by 1400 GMT while US gold futures fell 0.2pc to $1,286.80 per ounce. Spot gold was on track to register a 2.8pc decline in September, its largest monthly fall so far in 2017 and the biggest since November 2016, af ter the dollar strengthened.

However, it was set to end the quarter 3.5pc higher as it rallied in July and August, partly due to geopolitical tensions including North Korea`s missile tests.

US data showed inflation remained benign in August with the core personal consumption expenditures (PCE) price index rising 1.3pc year-onyear, af ter advancing 1.4pc in July. The core PCE is the Federal Reserve`s preferred inflation measure and has a 2pc target. -Reuters