US inflation hits gold: Sharp drop in gram and ounce prices
The US October CPI data exceeding expectations with a 0.4 percent increase strengthened expectations of a Fed rate hike and led to a sharp drop in gold prices. Spot gold fell to 4,039 dollars, while gram gold dropped to 6,511 liras.
In the US, the Consumer Price Index (CPI) increasing by 0.4 percent monthly in October and exceeding expectations strengthened predictions that the Fed could raise interest rates, leading to a sharp drop in gold prices and causing spot gold to decline to 4,039 dollars and gram gold to 6,511 liras.
Following the October inflation data released in the US, spot gold declined to as low as 4,039 dollars, losing more than 2.60 percent in value. Domestically, gram gold was also affected by this decline, dropping to 6,511 liras. As of 16.48 TSI, spot gold was trading at 4,060 dollars and gram gold at 6,558 liras, while at the same hour the dollar index saw the 102 level and the dollar/TL exchange rate hovered at 50.23.
Inflation coming in above expectations changed expectations regarding the Fed's December interest rate decision. According to market pricing, the probability of the Fed raising its policy rate to the 4.00-4.25 range at its December meeting rose to 97.8 percent.
Sources
- cumhuriyet.com.tr · Link