FX.co ★ Gold Falls Below $4,030

Gold prices slipped below $4,030 an ounce on Thursday as investors digested new US economic data. Persistent inflation and robust growth reinforced expectations that the Federal Reserve could raise interest rates later this year. The US PCE price index, the Fed’s preferred inflation gauge, rose 0.5% month-on-month in September, the sharpest increase since March, while the annual rate edged up to 3.6%. Core PCE inflation also accelerated, reaching 3.1% year-on-year.

At the same time, US GDP expanded at an annualized 3.4% in the third quarter, topping forecasts of 3.2%, supported by resilient consumer spending and continued investment linked to artificial intelligence. The Federal Reserve left rates unchanged on Wednesday ahead of next week’s US midterm elections. However, futures markets, as tracked by the CME FedWatch Tool, still imply roughly an 80% probability of a rate hike in December. Meanwhile, oil prices retreated following reports that US Vice President JD Vance had moved to revive peace talks with Iran.