Gold slipped below $4,150 per troy ounce Monday after an early rise, while U.S. inflation data and Federal Reserve projections kept the path of interest rates in focus.
Reuters reported spot gold at $4,171.65 at 4:53 a.m. ET. GoldPrice.com later displayed $4,142.20 at 1:31 p.m. ET.
Reuters described the dollar as strengthening in its morning report. The U.S. Dollar Index climbed above 102 earlier Monday, as EconoTimes reported separately.
The U.S. Bureau of Labor Statistics (BLS) said consumer prices rose a seasonally adjusted 0.6% in September and an unadjusted 3.7% from a year earlier. Gasoline, up 9.1% for the month, supplied more than half of the increase in the overall index.
In a separate release, BLS said its final-demand producer price index rose a seasonally adjusted 1.3% from August, its biggest monthly gain since March 2022. The index was up an unadjusted 6.3% from a year earlier.
The Fed raised its target range by 0.25 percentage point to 3.75% to 4% on Sept. 16. Projections released with that decision showed 12 of 18 policymakers placing the appropriate year-end rate midpoint at 4.125%, one quarter point above the current range’s midpoint. Those individual assessments do not commit the Fed to another increase.
Gold pays no interest, so higher bond yields can raise the cost of holding it relative to interest-bearing assets, according to the World Gold Council. The council cited rising yields and the dollar as partial factors in gold’s 8.5% decline in U.S. dollar terms in September.
The Fed’s next policy meeting is scheduled for Oct. 27-28, with an announcement due at 2 p.m. ET on Oct. 28.
