Gold falls despite cooler inflation data, monthly loss in sight
GLD•Spot gold fell 0.7% to $4,152.86 an ounce and was down 6.6% in September, despite softer-than-expected U.S. inflation data. Markets put the chance of an October rate hike at about 39%, down from 45% before the data.
1. Gold retreats
Gold surrendered earlier gains and eased on Wednesday as higher energy prices outweighed support from cooler-than-expected U.S. inflation data. Spot gold was down 0.7% at $4,152.86 an ounce and had fallen 6.6% in September; U.S. gold futures settled 0.2% higher at $4,186.70.
2. Inflation and rates
The Personal Consumption Expenditures Price Index rose 0.3% last month after a downwardly revised 0.1% gain in July. Core PCE increased 3.0% year over year in August. Markets saw about a 39% chance of an October rate hike, down from about 45% before the data, while the chance of a December hike was 90%.
3. Other metals decline
Silver fell 2.1% to $60.18, platinum lost 0.4% to $1,699.40, and palladium eased 1.5% to $1,204.53. All three were poised for monthly declines, while gold, silver and platinum were on track for quarterly gains.
