Gold rose early Wednesday, with DG spot gold climbing over $4060 an ounce, after Tuesday’s selloff that dropped the precious metal almost 3% on a stronger dollar and Treasury yields, however the bullion has receded once again as expectations for a hawkish Fed weigh on enthusiasm.
The yellow metal rose after testing technical support at $4,000 an ounce. New U.S. consumer price index data for October, which came out Tuesday, came in hotter than expected, solidifying bets of an upcoming interest rate hike. A stronger U.S. currency and Treasury yields is typically bearish for gold, making it a less attractive asset for investment.
December gold dropped 2.1% Tuesday to settle at $4,030.20 an ounce on Comex, and the front-month contract fell 1.1% in the first two days of the week. Bullion dropped 6.9% last month after losing 6.6% in September and rising 9.1% in August. It’s down 7.2% so far this year after rallying 64% in 2025. The December contract is currently down $6.20 (-0.15%) an ounce to $4024.00 and the DG spot price is $4016.00.
Consumer prices increased a seasonally adjusted 0.4% last month, more than the 0.3% economists had estimated. Excluding volatile food and energy prices, core CPI rose 0.3%, more than a 0.2% forecast. The Labor Department didn’t release annual estimates because year-earlier data was unavailable following last year’s government shutdown.
Chicago Federal Reserve President Austan Goolsbee on Tuesday called the CPI report “distressing” and “borderline disturbing” on PBS Newshour. He indicated that the Fed will need to address elevated inflation.
All the investors tracked by the CME FedWatch Tool are now betting on a Fed rate hike next month, with 84.3% wagering on a 25 basis point increase and the rest on a 50 basis point rise. Last month, the Fed kept interest rates at 3.75% to 4.00%, though the vote included two dissentions. The Fed raised its benchmark rate by 25 basis points in September. Higher interest rates are considered bearish for gold, making the yellow metal a less attractive asset for investment.
Inflation has climbed alongside oil prices since the U.S.-Israel war with Iran began earlier this year. The producer price index comes out Friday with October data. The Fed closely watches both inflation and labor market data when setting monetary policy. Last week, the key U.S. monthly jobs report for October exceeded economists’ forecasts, signaling labor market resilience that may help insulate it from the effects of a rate hike.
December silver futures declined 2.8% Tuesday to settle at $51.23 an ounce on Comex, and the front-month contract decreased 1.4% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver plummeted 19% last month after falling 9.6% in September and climbing 16% in August. It is down 27% so far this year after rising 141% in 2025. The December contract is currently up $1.055 (+2.06%) an ounce to $52.280 and the DG spot price is $52.24.
Spot palladium rose 50 cents Tuesday to $1,032.00 an ounce and is up 0.5% so far this week. Palladium fell 18% last month after losing 11% in September and rallying 5.7% in August. It’s down 36% in 2026 after rising 74% last year. Currently, the DG spot price is up $45.70 an ounce to $1075.00.
Spot platinum fell 1.7% Tuesday to $1,540.60 an ounce and has decreased $1.40 in the first two days of the week. Platinum slid 16% last month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 24% so far this year after increasing 122% in 2025. The DG spot price is currently up $17.50 an ounce to $1558.90.
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