Gold slipped to about $4,015 in early Asian trade after US PCE inflation numbers revived expectations of a Fed rate hike in December.

Spot gold (XAU/USD) dropped to roughly $4,015 during the early Asian session on Friday, pulling back from the $4,000‑plus level that had held earlier in the week. The move was sparked by the release of the US Personal Consumption Expenditures (PCE) price index, which showed a 0.5% month‑on‑month rise in September, matching market forecasts and reviving expectations that the Federal Reserve will raise rates at its December meeting.

US inflation data fuels rate‑hike expectations

• The Commerce Department’s Bureau of Economic Analysis reported a 0.5% rise in the September PCE index, in line with expectations.
• CME FedWatch now shows a 74.9% probability of a December Fed hike.
• Higher rates increase the opportunity cost of holding non‑yielding gold, adding pressure on the metal.

Gold holds better than industrial precious metals

• TD Securities notes that silver and platinum‑group metals are underperforming as macro headwinds weigh on demand.
• Gold remains relatively resilient after the FOMC, while industrial metals struggle.

What traders are watching next

• Gold’s position relative to the 100‑day simple moving average and the lower Bollinger band for further downside cues.
• Key US data releases later this week, including the CPI report and Fed Chair Kevin Warsh’s next remarks.

Related news

• BoJ holds rates as inflation hits 2% target for first time since 2013
• Dollar index slips as US‑Iran diplomatic hopes curb safe‑haven demand
• Japan factory output beats forecast while retail sales miss expectations
• Ethereum dips below $2,300 as US PCE inflation supports December rate hike

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This article is compiled from international market news for information only. It is not investment advice.