Business · Markets · 4 hrs ago
Gold falls as US inflation strengthens rate-hike expectations
Gold prices fell as US inflation picked up in September, strengthening expectations that the Federal Reserve may raise interest rates in December.
Spot gold was down 1.4% at $4,008.76 an ounce on Wednesday afternoon in the United States, while US gold futures for December delivery fell 0.5% to $4,031.40.
Gold was on track for a second monthly loss in a row.
Gold does not pay interest, so it can become less attractive when investors expect interest rates to rise.
The inflation news increased pressure on precious metals as markets weighed the prospect of higher US rates.
Energy prices, including those affected by developments in the Middle East, are another factor to watch, but no specific next step was reported.
Gold fell as faster US inflation strengthened expectations of a Federal Reserve rate increase in December.
Spot gold was down 1.4% at $4,008.76 an ounce at 2:09 p.m. Eastern time on October 29.
US gold futures for December delivery settled 0.5% lower at $4,031.40 an ounce.
Gold was on track for a second consecutive monthly loss.
Higher rate expectations can reduce the appeal of gold, which does not pay interest.
- Who
- Gold prices and the precious metals market.
- What
- Gold fell as faster US inflation strengthened expectations of a December rate increase.
- When
- October 29, 2026.
- Where
- International markets; the reported spot price was measured in US dollars per ounce.
- Why
- Faster US inflation strengthened expectations of a Federal Reserve rate increase, reducing gold’s appeal as a non-interest-paying asset.
This story does not have two clearly opposing sides.
US inflation accelerated, according to Hankyung.
Gold prices fell as expectations of a December US rate increase strengthened.
- Spot gold
- Down 1.4% to $4,008.76 an ounce at 2:09 p.m. Eastern time on October 29
- December gold futures
- Settled 0.5% lower at $4,031.40 an ounce
- Monthly trend
- Gold was on track for a second consecutive monthly loss
- Rate outlook
- Expectations of a Federal Reserve increase in December strengthened