Gold drops over 1% as hot US inflation data boosts Fed hike bets
GLD•Gold fell 1.8% to $4,083.94 an ounce as stronger-than-expected US inflation data lifted expectations of Federal Reserve rate increases. Markets saw a 42% chance of an October hike, up from 22% before the data.
1. Gold extends losses
Spot gold fell 1.8% to $4,083.94 per ounce, its lowest since October 7, extending losses for a third straight session. US gold futures settled 1.7% lower at $4,107.90 per ounce.
2. Rate hike bets rise
The US consumer price index rose 0.6% in September after increasing 0.4% in August. The dollar index climbed 0.5% and 10-year Treasury yields rose; markets priced in a 42% chance of an October rate hike, compared with about 22% before the inflation data, and a 93% probability of an increase in December.
