Gold Gets Boost as Cooling US Inflation Reduces Fed Rate Hike Bets

Gold prices started October on a high note after softer-than-expected US inflation data tempered forecasts for another US Federal Reserve interest rate hike this month.

The US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 0.3% in August from July and 3.4% from a year earlier.

This was below the 0.4% rise economists had expected, with core PCE inflation also falling short of projections at 0.2% month-over-month and 3% annually.

The combination of cooler inflation and resilient consumer spending has given the Fed a mixed picture as policymakers assess whether additional rate increases are necessary.