Gold price falls as PCE data fuels US rate hike bets - Mining.com.au

AI desk brief

Gold fell as much as 1.2% to around US$4,016/oz after September US PCE inflation rose 0.5% m/m, reinforcing expectations of another Fed hike in December. US gold futures slipped to US$4,027/oz, while CME FedWatch priced an 83% chance of a December increase; bullion is now down about 7% this year and near a second straight monthly loss.

Traders said the main drag is a stubbornly hot inflation backdrop that keeps US rates and Treasury yields elevated, reducing the appeal of non-yielding gold. The article also flags energy prices and US-Iran tensions as an additional inflation and bullion-volatility driver, with investors staying cautious around the US$4,000/oz level amid thin year-end liquidity.