Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 2% to close just above $1,675 as oil fell and the dollar rose ahead of this week's release of the September CPI, pressuring alternative stores of value. Profit-taking also came into play after last week's 2.2% rise.

The latest Consumer Price Index, due Thursday, is expected to show inflation holding near 40-year highs despite the Fed's aggressive campaign of raising interest rates this year. The overall 12-month rate is forecast at 8.1%, down slightly from 8.3% last month. The core rate, excluding volatile food and energy costs, is seen rising to 6.5% from 6.3% in August.

Following last Friday's stronger-than-expected jobs report, the elevated inflation data is expected to gird the Fed's loins for another whopping rate hike at this month's policy meeting. Fed fund futures traders are now pricing in a 92% likelihood of a four straight jump of 75 basis points, pushing the benchmark rate up to a range between 3.75% and 4%. It stood at zero eight months ago.

The dollar added 0.3% against major rivals on the CPI and rate expectations, pressuring gold and other commodities by making them more expensive in other currencies.

Falling oil prices also weighed on the metal. US benchmark WTI crude fell 2% as weak economic data from China and worries about the US slipping into recession prompted concerns about global demand despite last week's announcement of production cuts from OPEC+. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver losing 3.2% while platinum dropped 2.4% and palladium slid 1.1%.

At the Comex close: December gold lost $34.10 to $1,675.20; December silver fell 64 cents to $19.62; January platinum shed $22.10 to $895.80; and December palladium slipped $23.40 to $2,167.90 an ounce.