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Listen to this article in summarized format Spot gold dropped 1.7% to $4,086.06 per ounce by 9:03 a.m. EDT (1303 GMT), its lowest since October 7. US gold futures for December delivery fell 1.6% to $4,108.60 per ounce. The US dollar index climbed 0.4%, making greenback-denominated gold more expensive for holders of other currencies, while 10-year US Treasury yields also rose. "With the CPI inflationary data coming in hotter than expected and continuing to run at the levels above Fed targets, at this point it portends that the Fed is more likely to raise interest rates," said David Meger, director of metals trading at High Ridge Futures. "As a result, we've seen the dollar rise and pressure added to the gold market." The Consumer Price Index rose 0.6% last month after climbing 0.4% in August, the Labor Department's Bureau of Labor Statistics said on Wednesday. Markets see about a 44% chance of a US rate hike this month, up from about 22% before the inflation data, and are pricing a 95% probability of an increase in December, according to CME's FedWatch Tool. While gold is typically seen as a hedge against inflation, higher interest rates tend to diminish the appeal of non-yielding bullion. Fed Vice Chair for Supervision Michelle Bowman said the central bank has time to wait and see how financial markets and the economy evolve after its September rate rise before deciding whether to take any more action. Oil prices rose on Wednesday after an attack on the headquarters of Saudi Arabia's state-owned oil company, while Iranian officials told Reuters they were deploying new tactics to target ships, seeking to keep oil prices high and influence US midterm elections. "In the longer term, gold should again benefit from continued strong central-bank buying and renewed concerns over US debt and its rising interest burden," said Julius Baer analyst Carsten Menke. Among other metals, spot silver fell 4.1% to $56.99 per ounce, platinum dipped 2% to $1,629.79 per ounce and palladium fell 0.7% to $1,118.46 per ounce. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-10-15 03:00