Gold hits deepest decline in 26 sessions at settlement

Gold bars

Gold prices deepened their losses at settlement today, Oct. 8, as investors awaited the release of US inflation data later this week, after markets ruled out a possible 50-basis-point (bp) interest rate cut in November.

Bullion for December delivery plummeted by 1.15%, or $ 30.60, to $2,635.40 per ounce, the steepest pullback for the yellow metal since Aug. 30 (1.3%).

The US dollar index, which gauges the greenback's strength against a basket of six currencies, remained flat at 102 points, held steady at 102.55 points at 09:32 pm Makkah time.

The yellow metal received downward pressure from the yields of the US 10-year bonds, which are still above 4%, for the first time since last August.

Atlanta Fed President Raphael Bostic said earlier today that he remains focused on achieving the 2% inflation target and is monitoring potential labor market risks. He also noted that the strength of the US economy could hamper progress in easing price pressures.

Markets are awaiting the minutes of the Federal Reserve’s latest monetary policy meeting, due tomorrow, Oct. 9, a day before the US consumer price index reading is out.