FX.co ★ Gold Slides as Dollar Strength and Fed Rate Bets Weigh

Gold prices fell more than 2.5% to around $3,870 an ounce on Thursday, sliding to their lowest levels in months under pressure from a stronger US dollar, expectations of further monetary tightening by the Federal Reserve, and rising oil prices. Stronger‑than‑expected US consumer inflation data for October, released on Tuesday, drove the dollar to a 19‑month high as traders increased their bets on additional Fed rate hikes. At the same time, renewed gains in oil prices intensified inflation worries after President Donald Trump said the US did not need a deal with Iran and redirected Vice President JD Vance toward domestic priorities, away from negotiations with Tehran. According to CME’s FedWatch Tool, markets are now pricing in nearly a 90% probability of a 25‑basis‑point rate hike in December, while the odds of a larger 50‑basis‑point increase have climbed to about 10%, up from zero before the inflation report.