Gold climbed in Asian trading on Monday after September U.S. inflation accelerated, while calls for further Federal Reserve rate increases kept borrowing costs central to bullion traders’ calculations.
In a Reuters market update at 00:42 UTC on Nov. 2, gold was priced at $3,894.89 per ounce, up 0.5%. December-delivery U.S. futures gained 0.1% to $3,903.90 per ounce. Reuters said bullion remained near a one-year low after reaching its weakest level since October 2025 in the previous session.
The U.S. Bureau of Labor Statistics (BLS) said the Consumer Price Index (CPI) rose 0.6% from August and 3.7% over the 12 months through September. The annual rate had been 3.4% through August. The BLS said the gasoline index jumped 9.1% during September, accounting for more than half of the month’s overall CPI increase.
The Federal Open Market Committee (FOMC) kept its federal funds target range at 3.75%-4% on Oct. 28 in a 10-2 vote. Lisa D. Cook and Beth M. Hammack dissented, favoring a 0.25-percentage-point increase. The committee said inflation remained elevated.
Dallas Fed President Lorie Logan said Oct. 30 that, under her current outlook, the FOMC needed at least two more rate increases of 25 basis points each. She also said she voted to leave rates unchanged at the October meeting.
Reuters cited a roughly 75% chance of a December increase from CME Group’s FedWatch Tool, a time-sensitive reading based on futures prices. Reuters said higher rates can steer investors toward interest-paying assets, while gold generates no income. The news agency also cited Commerzbank analysts who linked part of Friday’s decline to possible forced sales and margin calls after a sharp technology-stock selloff. Reuters separately reported subdued physical demand in India and China, with some buyers in India waiting for lower prices.
The move follows EconoTimes’ earlier coverage of gold trading near $4,000 after a Friday session low of $3,975. The BLS is scheduled to release October CPI data Nov. 10 at 8:30 a.m. ET. The next FOMC meeting is scheduled for Dec. 8-9.
