U.S. producer prices rose 0.4% in August from July, matching expectations and accelerating from 0.1% in July, as a 4.2% jump in energy prices drove more than three-quarters of the 1.1% increase in goods prices. The annual Producer Price Index increase accelerated to 5.4% from 4.8%, while core PPI rose 0.2% monthly and 4.6% annually. The data reinforced expectations that the Federal Reserve could raise interest rates by a quarter point, with CME FedWatch indicating roughly 70% odds, and contributed to a weaker gold outlook. Spot gold rose 0.8% to about $4,351.28 an ounce after Thursday's nearly 2% selloff but remained on course for a weekly decline of more than 2% and a third consecutive weekly loss. Investors awaited the Bureau of Labor Statistics' August Consumer Price Index report, while crude prices approaching $108 a barrel and geopolitical tensions involving Washington and Tehran added to inflation concerns. Gold investment demand nevertheless remained strong, with physically backed gold ETFs receiving $18 billion in August net inflows and holdings reaching a record 4,189 tonnes.