Gold Prices Steady Near $4,150 Amid Lower US Inflation

Gold prices have stabilized near $4,150 an ounce after a rough September, as a lower-than-expected US inflation reading reduced the likelihood of another interest rate hike by the Federal Reserve this month.

The personal consumption expenditure index excluding food and energy rose just 0.2 percent in August, below consensus forecasts, while consumer spending climbed at its fastest pace in over a year.

Despite this softer inflation signal, long-dated Treasury yields have risen to multi-decade highs, keeping a lid on any meaningful rebound in non-yielding assets like gold.

Ewa Manthey, a commodity strategist at ING Bank, notes that the lingering threat of further tightening and elevated bond yields leave gold exposed to additional downside.