Gold Drops Over 1% as US CPI Fuels September Rate Hike Bets — SkimNews
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- Gold fell over 1% after US inflation data boosted market bets on a September Federal Reserve interest rate hike, according to CNBC.
- Gold and silver tumbled as a September rate hike appeared more likely, while Reuters noted softer oil prices lent brief support to bullion and FOREX.com reported gold weathering a violent rates move ahead of the US CPI release.
Why it matters: A September Fed rate hike now looks priced in after the hot inflation print, lifting the opportunity cost of holding non-yielding gold and hammering bullion by more than 1% in a single session — a sharp reversal from the early-session gain softer oil prices had briefly delivered.
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