Gold Slides as Strong US Inflation Fuels Rate Hike Bets

2026-10-14 12:55 By Joana Ferreira 1 min. read

Gold prices fell below $4,100 an ounce on Wednesday, hitting their lowest level since early August, as a stronger-than-expected US inflation report prompted markets to reassess the Federal Reserve’s rate outlook.

US inflation rose to 3.7% year-on-year in September, above forecasts of 3.6%, driven by higher energy prices.

Monthly CPI increased 0.6%, its biggest gain in five months, while core inflation also exceeded expectations, reaching 2.6% annually and 0.3% monthly.

According to LSEG data, markets now see around a 50% chance of the Fed holding rates steady at its October meeting, down from more than 78% before the report.

Meanwhile, the probability of a rate hike in December has risen to nearly 99%, from 88% previously.

Although recent Fed communications had offered little indication of a back-to-back rate hike in October, the larger-than-expected increase in core CPI has brought that possibility back into focus, adding further pressure on non-yielding gold.



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