US Inflation Data Sends Gold Prices Tumbling Amid Rate Hike Fears

Global gold prices have slipped due to higher-than-expected US inflation data and subsequent expectations of a Federal Reserve rate hike. The latest US inflation numbers show that underlying inflation edged up in August, with the core consumer price index surging 0.3 per cent from the previous month.

The MCX gold futures expiring October were trading at Rs 1,52,655 per kg, while the silver futures for September delivery stood at Rs 2,34,886 per kg. Spot gold prices were near $4,340 an ounce, down nearly 0.2 per cent on the day and off 1.8 per cent for the week.

The heightened inflation concerns due to crude oil price rally have increased expectations of a Federal Reserve rate hike sharply higher, weighing on gold and silver. Traders are pricing in nearly 88 per cent chance of a Fed rate hike in September, marking the institution's first rate hike in three years.