Standard Chartered Cuts Near-Term Gold Target as US Inflation Rises 0.4%
Key Facts
Standard Chartered maintained its positive view on gold but cut its near-term price target, according to the bank’s official website. The move came as the US consumer price index rose 0.4% month on month in October, after a 0.6% increase in September, according to the Bureau of Labor Statistics. The latest monthly change puts headline inflation in a slower context than the previous month. Meanwhile, the core index, which excludes food and energy, rose 0.3% in October. The core index had recorded the same monthly rate in September and August.
The shelter index rose 0.3% in October and accounted for more than 30% of the monthly increase in the all-items index, according to the Bureau of Labor Statistics. The food index also rose 0.5%, while the energy index increased 0.7% during the month. These readings show that shelter, food and energy components recorded simultaneous monthly increases. The bureau did not publish the year-on-year change in the consumer price index for October 2026 for series for which October 2025 data could not be published. The bureau said it did not collect survey data for October 2025 because of a lapse in appropriations.
Spot gold closed at $4,041.275 on November 10, according to EL7 data. In the US bond market, the two-year yield rose 19.28 basis points to 4.74% on the same day. The benchmark 10-year yield also climbed 12.76 basis points to 4.988%, according to Reuters via Kitco. Both yields rose after the inflation report, in a market move that coincided with its release. On demand, the World Gold Council said physically backed gold exchange-traded funds added 211 tonnes in the third quarter, lifting holdings to a record 4,256 tonnes.
The World Gold Council said investment demand is expected to remain the main source of annual growth in gold demand, with its level in 2026 forecast to exceed that in 2025 by about 200 tonnes. In its fourth-quarter outlook, the council warned that higher interest rates and bond yields, along with a stronger dollar, could weigh on demand. By contrast, it said financial concerns, inflation risks, geopolitical tensions and market stress could support demand. These factors define a divergence between pressure linked to yields and the dollar and support from risks and investment demand, according to the council. The market is awaiting the release of the final US producer price index for October on Friday, November 13, at 8:30 a.m. Eastern Time, according to the Bureau of Labor Statistics schedule.