gold futures fell friday with prices on track for their first weekly loss in three weeks as a 75 basis point interest rate rise by the federal reserve next month looked to be locked in the wake of higher than expected us consumer price inflation in september in data published thursday gold and silver continue to trade in a strong inverse relationship with the powerful us dollar index said jim wyckoff senior analyst at kitcocom in a daily commentary and gold and silver bulls remain perplexed by their metals inability to catch a safehaven bid amid heightened geopolitical and marketplace uncertainties in friday dealings the ice us dollar index was up 08 at 11325 trading up 04 for the week gold ended lower on thursday but off session lows in a whipsaw session that saw us stocks snap back from sharp losses in volatile activity across financial markets after the september consumerprice index came in hotter than expected cementing expectations for a 75 basis point rise in the fedfunds rate in early november investors also penciled in a higher peak for interest rates as the fed battles stubborn inflation the inflation data was terrible for the yellow metal as it cemented a 75 basis point hike from the fed next month not just that with inflation seemingly so stubborn it may need to go further than markets previously anticipated said craig erlam senior market analyst at oanda in a note that doesnt bode well for gold in the near term yesterdays lows around 1640 could soon be tested once more with the lateseptember lows the next test after that he said on friday data showed us retail sales fell flat in september the university of michigan survey revealed that consumer sentiment edged up to 598 in october from 586 in the previous month while consumer expectations for inflation over the next year rose to 51 from septembers oneyear low of 47