Gold Falls to Over Two-Month Low
Gold prices fell to around $4,080 an ounce on Thursday, hitting their lowest level since early August, as rising oil prices heightened inflation concerns ahead of next week’s Federal Reserve policy decision. Brent crude climbed to its highest level since May after renewed Houthi attacks in Saudi Arabia raised fears of a broader regional escalation and further supply disruptions. Recent US consumer and producer inflation data came in hotter than expected, while falling weekly jobless claims pointed to continued labor market resilience, strengthening the case for tighter monetary policy. Although the Fed is widely expected to hold rates at its October 27—28 meeting, Goldman Sachs forecasts another 25-basis-point hike in December. Traders are also pricing in an over 85% probability of a December increase, according to CME’s FedWatch Tool. Investors now await next week’s PCE price index, the Fed’s preferred measure of inflation, for further clues on the policy outlook.
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Gold prices fell to around $4,080 an ounce on Thursday, hitting their lowest level since early August, as rising oil prices heightened inflation concerns ahead of next week’s Federal Reserve policy decision. Brent crude climbed to its highest level since May after renewed Houthi attacks in Saudi Arabia raised fears of a broader regional escalation and further supply disruptions. Recent US consumer and producer inflation data came in hotter than expected, while falling weekly jobless claims pointed to continued labor market resilience, strengthening the case for tighter monetary policy.
Although the Fed is widely expected to hold rates at its October 27—28 meeting, Goldman Sachs forecasts another 25-basis-point hike in December. Traders are also pricing in an over 85% probability of a December increase, according to CME’s FedWatch Tool. Investors now await next week’s PCE price index, the Fed’s preferred measure of inflation, for further clues on the policy outlook.