Gold falls below US$4,000 as traders assess inflation, Fed remarks
Traders are now fully pricing in a quarter-point hike next month, with a small chance of a half-point move
Gold prices fell below $4,000 an ounce as traders analyzed inflation data and Federal Reserve officials' comments indicating a potential rate hike this December. The precious metal dropped 1.2% during U.S. trading hours, reaching $3,984.15 per ounce in New York. The dollar reached its highest level since May 2025, adding to the downward pressure on gold, which does not generate interest income.
A stronger U.S. currency made the metal more expensive for most buyers. Despite these challenges, gold largely stayed above $4,000, indicating a key support level for investors. Fed officials' "hawkish" remarks fueled speculation of a more aggressive tightening of monetary policy. Fed Bank of Chicago President Austan Goolsbee described the October inflation report as "borderline disturbing" during an appearance on PBS Newshour.
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