Gold prices fell sharply on Tuesday after a hotter-than-expected U.S. inflation report lifted the dollar and Treasury yields and added to bets on a Federal Reserve rate increase in December. Gold futures for December delivery on the Comex settled at $4,030.20 an ounce, down $84.30, or 2.05%, from Monday’s settlement of $4,114.50.
Spot gold was down about 2.6% near $4,032 an ounce in late U.S. trading, Kitco reported. Gold prices fell nearly 3% after the inflation data lifted the dollar and Treasury yields, CNBC reported.
Consumer prices rose 0.4% in October, more than the 0.3% economists had forecast, the Bureau of Labor Statistics said Tuesday. Core prices, which exclude food and energy, rose 0.3%, above the 0.2% forecast. Gold pays no interest, so higher rates tend to make it less attractive to investors than bonds and cash.
Silver also fell. Spot silver was down about 3.6% near $51.41 an ounce in late trading, according to Kitco.
Spot gold remains well below the record of about $5,595 an ounce it reached on Jan. 29, according to Reuters.
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