Gold Prices Recover After Sharp Drop Following US Inflation Data
Gold, which experienced a sharp decline following higher-than-expected US inflation data for September, rose to $4,143.75 per ounce amid a pullback in the dollar index.
Gold prices, shaken by higher-than-expected inflation data released in the US and expectations that the Fed could raise interest rates, staged a recovery with the decline in the dollar index. Spot gold traded at $4,143.75 per ounce, while increases were also seen in other precious metals.
Sharp Drop Following Inflation Data
The consumer price index in the US, which recorded its fastest monthly increase since April, rose by 0.6 percent on a monthly basis in September. Driven also by rising energy costs, these data heightened concerns that the Fed might further tighten monetary policy.
Trading around $4,080 yesterday, spot gold faced a loss of value exceeding 1.6 percent following the data, bringing the $4,000 level back into focus.
Recovery with the Decline of the Dollar Index
Although strengthened expectations that the Fed could hike interest rates put pressure on precious metals, a 0.5 percent drop in the dollar index supported gold in resuming its upward movement. According to the latest data, spot gold is trading at $4,143.75 per ounce.
Current Status in Other Precious Metals
The recovery in precious metals also reflected positively on silver, platinum, and palladium prices. Spot silver increased by 1 percent to $56.20, while platinum rose by 0.8 percent to $1,615.52. Palladium gained 1.3 percent to reach $1,110.52.
Assessments by Fed Officials
Chicago Fed President Austan Goolsbee described the latest inflation figures as discouraging. Stating that artificial intelligence infrastructure investments could contribute to economic overheating, Goolsbee noted it was too early to say whether the current interest rate level is sufficient to bring inflation down to target.
Future Outlook and 2027 Expectations
Rick Kanda, Managing Director of The Gold Bullion Company, emphasized that central bank purchases, the direction of interest rates, and the course of the dollar will be decisive for gold's performance in 2027. He stated that investors' safe-haven demand will also have an impact on prices.
Gold Prices in the Free Market
Gram gold is sold at 6,585.83 liras with a 1 percent increase, while quarter gold finds buyers at 10,798 liras and half gold at 21,589 liras. Full gold declined by 1.39 percent to 42,422.73 liras, whereas the Cumhuriyet gold trades at 43,052 liras with a 1.08 percent increase.