Business · Markets · 1 day ago
Gold falls as US inflation data lift rate-hike expectations
Gold prices fell for a third straight session on Wednesday after US inflation data came in higher than expected.
The decline involved gold traded in the United States, where December futures settled at $4,107.90 an ounce, down 1.7%.
US consumer prices rose 0.6% in September, after increasing 0.4% in August.
Higher inflation led markets to raise the estimated chance of a Federal Reserve rate increase this month to about 42%, from 22% before the data.
A stronger dollar and rising bond yields added pressure because gold pays no interest and becomes more expensive for buyers using other currencies.
Higher rates can make gold less attractive, even though investors often buy it as protection against inflation.
The Fed has not said whether it will raise rates again, and officials say they can wait to assess the economy and financial markets.
Gold prices fell for a third consecutive session on Wednesday after stronger-than-expected US inflation data increased expectations of an interest-rate hike.
Spot gold dropped 1.8% to $4,083.94 an ounce, its lowest level since October 7, according to El Economista MX.
US gold futures for December delivery settled down 1.7% at $4,107.90 an ounce, while CNN Brasil reported a 1.66% decline.
The US dollar and Treasury yields rose, adding pressure to gold, which does not pay interest.
Markets put the chance of a rate increase this month at about 42%, up from 22% before the inflation data, according to CME’s FedWatch tool.
- Who
- Gold prices and traders reacting to US inflation data and interest-rate expectations.
- What
- Gold fell for a third consecutive session. Stronger-than-expected inflation increased bets on a Federal Reserve rate hike.
- When
- Wednesday, October 14, 2026.
- Where
- US markets; gold futures traded on Comex, part of the New York Mercantile Exchange.
- Why
- US inflation data came in above expectations, lifting expectations of higher interest rates, while the dollar and Treasury yields also rose.
This story does not have two clearly opposing sides.
US consumer prices rose 0.6% after increasing 0.4% in August, according to the Bureau of Labor Statistics.
Gold fell for a third consecutive session after the inflation reading increased expectations of a Federal Reserve rate hike.
US gold futures for December delivery settled down 1.7% at $4,107.90 an ounce, according to El Economista MX.
- Spot gold
- Fell 1.8% to $4,083.94 an ounce
- December US gold futures
- Settled at $4,107.90 an ounce
- US consumer prices
- Rose 0.6% in September
- Chance of October rate hike
- About 42%, up from 22% before the inflation data
- Chance of December rate hike
- 93%, according to CME’s FedWatch tool
3 sources
What people are saying
At this point, everything indicates that it is more likely that the Federal Reserve will raise interest rates
In the long term, gold should benefit again from continued strong purchases by central banks and renewed concern about US debt and its growing interest burden