Gold Steady Near $4,155 as Softer Inflation Data Cuts Odds of October Fed Rate Hike

Gold held steady to start the month as softer inflation data reduced expectations the Federal Reserve will raise interest rates at its next meeting, though elevated bond yields kept the metal exposed to renewed selling. Bullion traded around $4,155 an ounce after falling 0.6% the prior day, with spot gold down 0.1% at $4,151.12 an ounce in Singapore. The core personal consumption expenditure price index rose a less-than-expected 0.2% in August, and the prior month was revised lower. Long-dated Treasury yields climbed to multi-decade highs on Wednesday as consumer spending rose at its fastest pace in over a year, prompting traders to cut October rate-hike odds to about 34% from nearly 70% earlier in the week. Gold fell 6% in September, its worst month since June, after the Fed hiked rates for the first time since 2023. Traders await Friday's jobs report for the next rate clues. Silver slipped 0.3% to $60.24 an ounce, while platinum and palladium edged lower.