US Inflation Data Drives Down Gold Prices Amid Rate Hike Bets

Gold prices have retreated in response to the latest US inflation data, which showed a 0.4% increase month over month and 3.4% year over year.

The Consumer Price Index (CPI) for August exceeded expectations, leading markets to price in an 85-90% chance of a rate hike at the upcoming Federal Reserve meeting.

This development typically puts pressure on gold, which does not yield interest, making it less appealing as an investment.

The spot gold price has remained within a tight range between $4,355 and $4,414 per ounce, with some analysts predicting a lower likelihood of gold reaching $15,000 by the end of December.