Gold Prices Break Below $4100 Following Hotter-Than-Expected US CPI

Key Facts

1Gold prices dropped over 1.5% to trade around $4098 an ounce following the release of inflation data.

2The US Consumer Price Index (CPI) for September rose 3.7% year-on-year, exceeding the 3.6% forecast.

3Annual Core CPI accelerated to 2.6% in September from 2.4% in August.

Gold prices dropped over 1.5% to trade around $4098 an ounce following the release of US inflation data. Reuters reported that the Consumer Price Index (CPI) for September rose 3.7% year-on-year, exceeding the 3.6% forecast. Additionally, annual Core CPI accelerated to 2.6% in September from 2.4% in August.

The decline follows persistent inflationary pressures that strengthen the case for tighter monetary policy by the Federal Reserve. Higher-than-expected headline and core readings suggest a higher probability of a rate hike in December, weighing on non-yielding assets and causing a significant technical break below the $4100 threshold.