Forex
Gold Prices Plummet on Inflation Data, Fed Rate Hike Bets Soar
Gold prices plummeted over 1% on Thursday after robust U.S. inflation data and rising oil costs fueled bets for a Federal Reserve rate hike next week.
The Producer Price Index (PPI) rose 0.4% last month, with energy costs playing a significant role in the increase.
According to Kyle Rodda, senior financial market analyst at Capital.com, the data 'sort of tells us that there has been a bit of a pickup in underlying inflation in the U.S. economy, and a part of that is due to rising energy costs.'
The news sent gold prices tumbling, with spot gold falling 1% to $4,358.09 per ounce by 11:14 a.m. EDT (1514 GMT), while U.S. gold futures dropped 1.4% to $4,400.60.