Gold Prices Sink as Strong Dollar and Rising Oil Weigh on Market

Gold prices fell on Wednesday, snapping a two-month winning streak and posting a 6.5% drop for September.

The decline was largely attributed to a firmer US dollar, a sharp decline in Bitcoin, and rising oil prices, which surged more than 14% for the month.

A data deluge earlier in the day had initially provided some relief, as US inflation figures showed the headline personal consumption expenditures (PCE) price index increased 0.3% month-over-month and 3.4% year-over-year in August, below estimated figures of 0.4% and 3.7%.

The data also revised up US Q2 real GDP growth to 2.2%, from 1.5%. Additionally, the ADP report showed a private employment increase of 90k jobs in September, the first acceleration since May.