Gold Edges Lower on Fed Rate Hike Concerns
Gold prices declined toward $4,000 per ounce on Friday, extending losses from the previous session as persistent inflation and resilient economic growth in the US reinforced expectations of a potential Federal Reserve rate hike later this year. The US PCE price index increased 0.5% month-on-month in September, marking its biggest rise since March, while annual inflation accelerated to 3.6%. Core PCE inflation also climbed to 3.1% year over year. Meanwhile, US GDP expanded at an annualized rate of 3.4% in the third quarter, exceeding expectations of 3.2%, supported by resilient consumer spending and strong AI-related investment. The Federal Reserve kept interest rates unchanged on Wednesday ahead of next week’s US midterm elections, although markets continue to assign roughly a 75% probability of a rate hike in December, according to the CME FedWatch Tool. Gold is on track to decline nearly 4% in October, potentially recording its second consecutive monthly loss.
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Gold prices declined toward $4,000 per ounce on Friday, extending losses from the previous session as persistent inflation and resilient economic growth in the US reinforced expectations of a potential Federal Reserve rate hike later this year. The US PCE price index increased 0.5% month-on-month in September, marking its biggest rise since March, while annual inflation accelerated to 3.6%. Core PCE inflation also climbed to 3.1% year over year. Meanwhile, US GDP expanded at an annualized rate of 3.4% in the third quarter, exceeding expectations of 3.2%, supported by resilient consumer spending and strong AI-related investment.
The Federal Reserve kept interest rates unchanged on Wednesday ahead of next week’s US midterm elections, although markets continue to assign roughly a 75% probability of a rate hike in December, according to the CME FedWatch Tool. Gold is on track to decline nearly 4% in October, potentially recording its second consecutive monthly loss.