Gold Extends Losses Ahead Of US Inflation Data
(RTTNews) - Gold prices were moving lower on Wednesday, extending losses for a third consecutive session as investors assessed the prospect of another Federal Reserve interest-rate increase before the end of the year.
Spot gold dipped 0.4 percent to $4,143.18 an ounce after falling 0.8 percent in the previous two sessions. U.S. gold futures were down 0.3 percent at $4,166 per ounce.
The U.S. dollar languished after falling from an 18-month high in the previous session. Treasury yields inched lower ahead of a closely watched report on U.S. consumer price inflation due later in the day.
The annual rate of consumer price growth is expected to have accelerated to 3.7 percent in September from 3.4 percent in August.
The data along with the release of Thursday's producer price index figures and Fed Chair Kevin Warsh's last speech before the upcoming rate meeting could affect future Federal Reserve decisions.
New York Fed President John Williams said on Tuesday he believes it might be appropriate to raise interest rates one more time this year, but there is no need for further tightening in 2027.
Fed Governor Christopher Waller noted that the surge in U.S. Treasury yields to 24-year highs is driven by stronger economic growth and AI investment, adding that inflation expectations remain well anchored.
CME Group's FedWatch Tool currently indicates a 23 percent chance of a Fed rate hike later this month and an 88 percent probability of an increase in December.
Elsewhere, China's consumer price inflation rose slightly in September, driven by higher fuel prices while producer price inflation hit the highest level in more than four years, official data revealed earlier today.
Brent crude prices were little changed amid escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels.
Saudi Aramco's Dhahran headquarters was hit during a Houthi missile attack on Tuesday, stoking fresh uncertainty over a recovery in energy shipments from the Persian Gulf.
Tehran has intensified attacks on ships sailing through the Strait of Hormuz, although the U.S. Central Command said it had helped facilitate the passage of more than 19 million barrels of crude though the strategic waterway on Monday.
U.S. President Donald Trump, who is facing growing backlash over his plan to import diesel from Russia, defended the agreement and said the additional supplies would enter theglobal marketand help ease elevated prices.
