Gold Prices Plummet as US Inflation Data Falls Short

Gold prices retreated on Wednesday, down 0.6%, after US inflation data came in above the Federal Reserve's (Fed) 2% goal but below estimates.

The Fed's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) Price Index, was unchanged from July's print at 3.0% annually in August, below forecasts of 3.3%.

This triggered a reaction by money markets, with traders making a U-turn and now expecting the Fed to hold rates at the October meeting, with odds standing near 62%, according to Prime Terminal.