Gold Falls as Hot US Inflation Boosts Rate Hike Odds
Gold prices extended losses after hotter than expected US inflation figures boosted the dollar and increased expectations for a larger Federal Reserve rate hike.
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Gold fell 1.1% to $3,986.79 per ounce during Wednesday afternoon trading, pressured by hotter-than-expected inflation figures from the United States and hawkish commentary from Federal Reserve officials. The decline extended a 3% drop from Tuesday, which followed consumer price data showing inflation rising faster than economists projected. Stronger inflation prints have fueled market expectations for higher borrowing costs heading into the final Federal Reserve meeting of the year.
