Gold prices eased in early Asian trade on Friday after dropping more than 1% in the previous session, as stubborn US inflation fuelled expectations of further Federal Reserve rate hikes, weighing on bullion.FundamentalsSpot gold was down 0.4% at $4,006.06 per ounce by 0036 GMT, while US gold futures for December delivery droped 0.3% to $4,018.50. Bullion is headed for a modest weekly gain but remains on track for a second consecutive monthly decline.US inflation accelerated in September as consumers paid more for gasoline and other goods, supporting economists' expectations of an interest rate increase from the Fed in December.Traders are now pricing in about a 75% chance of a rate hike in December, according to the CME's FedWatch Tool.Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.Live EventsThe European Central Bank left interest rates unchanged in a well-telegraphed move on Thursday but clearly hinted at another hike in December with a warning that high and rising energy costs were fuelling inflation risks.