Gold slips below $4,000 as strong dollar, rate-hike bets weigh

The precious metal extended losses for a third consecutive session after hotter-than-expected US inflation figures and hawkish remarks from central bank policymakers reinforced the outlook for tighter monetary policy.

At 0524GMT, spot gold was down 0.43% at $3,970.59 per ounce, extending losses for a third straight session. Among other precious metals, silver fell 0.69% to $51.305 per ounce.

The US dollar index hovered just below 103, holding near its highest level since April 2025.

US consumer prices rose 0.4% in October from the previous month, exceeding market expectations of 0.3%, although the increase slowed from September's 0.6%.

Federal Reserve Governor Christopher Waller signaled support for a December interest rate increase while raising the possibility of a larger increase if inflation proved stronger than he anticipated.

He indicated that he was leaning toward a 25-basis-point hike even if monthly inflation improved, while a substantially stronger reading could warrant considering a 50-basis-point increase.

Market participants are now awaiting upcoming US economic releases, including producer price figures, weekly jobless claims, and existing home sales, for fresh clues on the central bank's policy path.

Higher interest rates typically weigh on gold prices by increasing the opportunity cost of holding the non-interest-bearing metal.

Meanwhile, the Bureau of Labor Statistics did not publish annual headline or core inflation figures for October because the 2025 government shutdown disrupted survey data collection.

The disruption left the agency without the year-earlier figures needed for annual comparisons.