US September Core Inflation Tops Expectations; Gold and Silver Plunge as Markets Bet on Another Fed Rate Hike - BigGo Finance

US September core inflation came in above expectations, according to BigGo Finance, prompting a sharp reaction across precious metals. Gold and silver prices fell as market participants moved to price in the possibility of another Federal Reserve rate hike. Core inflation strips out volatile food and energy costs, so it is closely watched as a gauge of underlying price pressure. When it runs hotter than forecast, investors often expect the Fed to keep policy tighter for longer.

That matters for gold and silver because both metals pay no yield. When rate-hike expectations rise, bonds and cash become relatively more attractive, which can weigh on demand for non-yielding assets. A stronger dollar, which often accompanies tighter policy bets, can add further pressure since metals are priced in dollars.

What to watch next: upcoming Fed commentary and inflation data for signs of whether pricing pressure is easing. Markets will also track the dollar and Treasury yields, since shifts in either can influence how precious metals behave in the sessions ahead.