Solid Gold Berjangka – Global gold prices remained under pressure during Thursday's trading (Oct 15), hovering around US$4,138 per troy ounce after plunging 1.3% in the previous session. The decline followed US inflation data showing a sharp rise, fueling concerns that the Federal Reserve (the Fed) might need to raise interest rates again to curb prices.
Data from the US Bureau of Labor Statistics showed the Consumer Price Index (CPI) rose 0.6% month-on-month in September—the fastest pace since April—driven largely by high energy costs. Inflationary pressures triggered by energy supply disruptions linked to the US-Iran conflict also weighed on gold, which has lost over 20% of its value amidst a high-interest-rate environment.
Following the inflation release, market participants raised the probability of a Fed rate hike at the October meeting to approximately 30%. US government bond yields held near multi-year highs, while the dollar strengthened to its highest level in over a year. These conditions diminished gold's appeal, as the metal does not generate interest income.
Chicago Federal Reserve President Austan Goolsbee described the latest inflation data as disappointing and warned that the development of artificial intelligence (AI) infrastructure could also heighten economic pressures. He noted that it is too early to determine whether current interest rates are high enough to bring inflation back to the Fed's 2% target.
Investors are now awaiting remarks from Fed Chair Kevin Warsh at the International Monetary Fund (IMF) meeting in Bangkok, ahead of the communications blackout period preceding the October 27–28 policy meeting. At 07:32 Singapore time, spot gold held relatively steady at US$4,102.60 per troy ounce, while silver stood at US$55.53 following a 6% drop in the previous session. Gold's future direction is expected to remain influenced by Federal Reserve interest rate expectations, US dollar movements, and bond yields.