Gold falls over 1% to $4,086.06 after US CPI 0.6%
Gold prices slid over 1% on Wednesday after US inflation numbers came in hotter than expected.
With the Consumer Price Index rising by 0.6% in September, spot gold dropped to $4,086.06 per ounce, its lowest since October 7.
Futures also dipped, as investors braced for possible Federal Reserve rate hikes.
US dollar strengthens, other metals fall
The surprise inflation boost sent the US dollar index up 0.4%, making gold pricier for buyers outside the US and adding pressure on demand.
As Treasury yields climbed and chances of a Fed rate hike jumped to 95% for December, other metals like silver, platinum, and palladium also lost value.
As David Meger, director of metals trading at High Ridge Futures, put it, "With the CPI inflationary data coming in hotter than expected and continuing to run at the levels above Fed targets, at this point it portends that the Fed is more likely to raise interest rates," and "As a result, we've seen the dollar rise and pressure added to the gold market."