Gold Drops on Rising US Inflation
Gold prices fell 1% after US inflation data reinforced expectations of a Federal Reserve rate hike later this year. The PCE price index accelerated in September, increasing the opportunity cost of holding the non-yielding metal.
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Gold dropped 1.1% to $4,024.10 per ounce on Thursday morning as elevated United States inflation reinforced expectations of a Federal Reserve interest rate hike. The decline puts the non-yielding metal on track for its second straight monthly loss. Higher borrowing costs increase the opportunity cost of holding bullion, dimming its investment appeal.
