Gold, silver plunge as hotter U.S. inflation raises prospect of larger Fed rate hike - Kitco PM Report
Gold and silver prices dropped significantly following a U.S. inflation report that exceeded expectations. The data suggests the Federal Reserve may maintain or increase interest rates, strengthening the dollar and pressuring precious metals.
Why it matters
Market volatility in precious metals often signals broader investor sentiment regarding U.S. monetary policy and economic stability.
(Kitco NewsWire) - Spot gold and silver prices were sharply lower in late U.S. trading Tuesday, as stronger-than-expected U.S. consumer inflation reinforced expectations for another Federal Reserve interest rate increase in December and raised the possibility of a larger policy adjustment. Treasury yields and the dollar advanced following the inflation report, placing renewed pressure on precious metals despite another decline in crude oil prices and reduced concerns about immediate military escalation involving Iran. Spot gold was trading near $4,031.80 an ounce, down $107.60, or 2.60%, while spot silver was trading near $51.410, down $1.894, or 3.55%.
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