Silver extended its decline on Friday as a firmer dollar and renewed expectations for a Federal Reserve rate increase before year-end reduced demand for non-yielding assets. Spot silver fell 1% to $51.87 an ounce, while spot gold was down 0.5% at $4,000.54. Earlier pricing showed gold at $3,997.39, down 0.6%, with December U.S. gold futures down 0.6% at $4,007.80 by 0255 GMT. Traders had priced in about a 75% chance of a December rate hike, according to CME's FedWatch Tool. September personal consumption expenditures inflation, the Federal Reserve's preferred gauge, rose 0.5% month over month, with annual inflation accelerating to 3.6% and core PCE inflation reaching 3.1%. Rising crude prices and supply concerns, including increased attacks on Saudi Arabia by Yemen's Iran-aligned Houthis, added pressure to the inflation outlook. Higher interest rates raise the opportunity cost of holding gold and silver, while platinum and palladium also fell and were headed for weekly and monthly declines.