Gold drops over 1% Wednesday on the release of key reports that show significantly hot inflation in September. This is the third straight losing session for the yellow metal.
The Consumer Price Index rose 0.6% last month after climbing 0.4% in August, per the Labor Department on Wednesday, putting the 12-month rate at 3.7%.
Next up, the producer price index is due out Thursday. The central bank closely watches inflation and the labor market when setting interest rates.
December gold futures fell 0.3% Tuesday to settle at $4,177.30 an ounce on Comex, and the front-month contract lost 0.9% in the first two days of the week. Bullion dropped 6.6% last month after rising 9.1% in August and gaining 1.7% in July. It is down 3.8% so far this year after rallying 64% in 2025. The December contract is currently down $57.90 (-1.39%) an ounce to $4119.40 and the DG spot price is $4098.90.
Investors tracked by the CME FedWatch Tool are evening split on whether the Fed will keep interest rates unchanged in October. Just over 50% are getting the rate will remain unchanged while just over 49% are anticipating a 25 basis point rate increase. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. The higher price of goods is being seen as a pivotal issue in the election. The only remaining subsequent meeting this year is Dec. 9.
The Fed raised its benchmark rate by 25 basis points last month. It had previously kept rates unchanged this year after three previous rate cuts.
New York Fed President John Williams told Bloomberg News on Tuesday that one more interest rate hike this year will likely be appropriate but that he doesn’t think additional increases will be necessary in 2027.
Inflation has climbed since the start of the war with Iran in late February.
December silver futures decreased 1.6% Tuesday to settle at $59.53 an ounce on Comex, and the front-month slid 2.5% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver tumbled 9.6% in September after climbing 16% in August and sliding 3.6% in July. It is down 16% so far this year after rising 141% in 2025. The December contract is down $3.050 (-5.12%) an ounce to $56.475 and the DG spot price is $56.36.
Spot palladium lost 1.3% Tuesday to $1,133.50 an ounce and declined 1.8% in the first two days of the week. Palladium lost 11% last month after rallying 5.7% in August and adding 5.8% in July. It’s down 30% in 2026 after rising 74% last year. Currently, the DG spot price is down $20.90 an ounce to $1111.50.
Spot platinum fell 1% Tuesday to $1,668.80 an ounce and is down 1.1% so far this week. Platinum fell 4.6% last month after increasing 7.5% in August and gaining 6.6% in July. Platinum is down 18% so far this year after increasing 122% in 2025. The DG spot price is currently down $46.30 an ounce to $1619.90.
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