Gold traded below $4,000 per troy ounce Friday, FXStreet reported, amid September U.S. inflation figures and the Federal Reserve’s Oct. 28 decision, which drew two votes for a rate increase.
FXStreet reported that gold reached $3,965 during Asian trading and stood at $3,979, down nearly 1%, at 7:10 a.m. EDT (11:10 GMT). EconoTimes previously covered gold near $4,000 as traders weighed U.S. data and the Fed outlook.
The U.S. Bureau of Economic Analysis (BEA) said the Personal Consumption Expenditures (PCE) price index rose 0.5% from August and 3.6% from a year earlier in September. The core index, which excludes food and energy, increased 0.3% month over month and 3.1% year over year.
The Federal Open Market Committee (FOMC) voted 10-2 to keep its federal funds target range at 3.75%-4%. Fed Gov. Lisa D. Cook and Cleveland Fed President Beth M. Hammack dissented, favoring a 25-basis-point increase. The committee said, “Inflation remains elevated.”
FXStreet linked investor caution to concerns about technology companies’ AI spending and reported a shift into government bonds. The outlet said gold traders were focused on inflation and interest-rate risks. It also cited bullion’s lack of yield, saying higher-rate expectations can increase the appeal of assets that pay interest.
The BEA’s October Personal Income and Outlays report is scheduled for Nov. 25 at 8:30 a.m. EST. The FOMC is scheduled to meet Dec. 8-9.
