Gold prices move upward following US inflation data
As consumer price index expectations strengthened following September's increase in the US, spot gold prices rose to $4,150 through trading in Asian markets.
Despite expectations for an interest rate hike strengthening following the release of high inflation data in the US, the ounce price of gold increased by 1% to reach $4,150.
Rise in Asian Markets
With the opening of Asian markets, the ounce price of gold increased by 1% to reach $4,150. During the sharp sell-off on Wednesday, gold had lost more than 1.6% of its value, falling to around $4,105 per ounce.
CPI Data and Energy Impact
According to data from the US Bureau of Labor Statistics, the consumer price index increased by 0.6% monthly in September. This rate was recorded as the fastest monthly increase since April, with energy costs playing a significant role in the rise.
Fed Policies and Expectations
The high inflation data strengthened investors' expectations that the US Federal Reserve might raise interest rates at its October meeting. The possibility of an interest rate hike generally puts pressure on gold, which does not yield interest.
Officials' Statements
Chicago Fed President Austan Goolsbee described the data as disappointing and warned that artificial intelligence infrastructure investments could drive inflation higher. Investors are awaiting messages from Fed Chair Kevin Warsh.
Future Outlook
Rick Kanda, CEO of The Gold Bullion Company, stated that gold's 2027 performance will depend on central bank demand, interest rates, the course of the US dollar, and safe-haven trends, emphasizing that further increases are possible.