Gold Gains on Interest Rate Worries
Gold prices rose significantly after the U.S. inflation data came in stronger than expected, increasing the likelihood of interest rate hikes at the upcoming Federal Reserve meeting. The spot price of gold increased by 1% to $4,146.48 per ounce, while futures contracts rose by 1.5% to $4,167.75. U.S. data showed that the Consumer Price Index (CPI) increased by 0.6% in September, the fastest rate since April, fueling investor expectations that the Federal Reserve may raise interest rates by up to 30%. Despite the dollar index falling by 0.5%, gold has lost more than 20% of its value since the global energy supply disruptions began, leading to inflation shocks and more aggressive monetary policies. The market is awaiting statements from Federal Reserve officials for signals on the interest rate trajectory in the coming period.
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