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Gold Drops Below $4,100 as US Dollar Hits Multi-Month High on Inflation Data
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CNBC TV18•14-10-2026, 23:08
Gold Drops Below $4,100 as US Dollar Hits Multi-Month High on Inflation Data
- •Spot gold fell 1.6% to $4,091.06 an ounce after US inflation data exceeded economist forecasts.
- •The US Consumer Price Index rose 3.7% year-on-year in September, boosting the US Dollar Index to its highest level since April 2025.
- •Experts suggest gold could find buying support in the $3,800-$3,900 range, with a sustained recovery expected in 2027.
- •Gold-backed ETFs have started attracting inflows and central bank purchases remain strong as prices approach $4,000 an ounce.
Key Questions Answered
Spot gold extended its losses and fell below $4,100 an ounce due to stronger-than-expected US inflation data that boosted the dollar and heightened expectations for further interest rate hikes.
The US Consumer Price Index rose 3.7% year on year in September, surpassing economists' average forecast of 3.6%. Additionally, core CPI increased to an annual rate of 2.6%, which was higher than the expected 2.5%.
Experts like Chirag Sheth expect gold to find buying support in the $3,800-$3,900 range, with a sustained recovery anticipated in 2027 driven by central bank purchases and long-term investment demand.
