FX.co ★ Gold Rises as Oil Prices Retreat

Gold advanced toward $4,150 per ounce on Thursday, rebounding from the prior session’s decline as crude oil snapped a five-day rally, easing pressure across broader markets. Nevertheless, expectations of more aggressive Federal Reserve interest rate hikes continued to dampen sentiment after US inflation data came in hotter than anticipated. The Consumer Price Index rose to 3.7% in September, its highest level in four months and above the market consensus of 3.6%, driven largely by higher energy costs.

Chicago Federal Reserve President Austan Goolsbee called the inflation figures “discouraging” and warned that the rapid build-out of artificial intelligence infrastructure could also be contributing to an overheating economy. Meanwhile, San Francisco Fed President Mary Daly signaled that the central bank may still need to raise short-term interest rates further, though she stressed there was no immediate need for a hike at this month’s meeting.