Gold prices edge lower as US inflation data reinforces Fed outlook
Bullion is headed for a modest weekly gain but on track for a second consecutive monthly decline
Gold prices experienced a slight decrease in early Asian trade on Friday, October 30, as higher US inflation continued to suggest additional Federal Reserve rate hikes. Spot gold dropped 0.4% to $4,006.06 per ounce, while December gold futures fell 0.3% to $4,018.50. Despite the weekly gain for bullion, the market remains on track for a second consecutive monthly decline.
In September, US inflation surged as consumers faced higher costs for fuel and other products, reinforcing expectations of a December interest rate increase from the Fed. Traders now believe there is a 75% chance of a rate hike in December, according to the CME's FedWatch Tool. Higher interest rates make holding non-yielding gold less attractive, decreasing its appeal to investors.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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