Gold declines ahead of key inflation data

Spot gold traded at approximately $4,126 per ounce during the morning session, while gram gold fluctuated between TL 6,650 and TL 6,700. After gaining support in previous sessions from a weaker U.S. dollar and declining oil prices, the precious metal faced cautious trading ahead of the crucial economic release.

Growing expectations that the Federal Reserve (Fed) could raise interest rates in December continue to weigh on gold prices. If U.S. consumer inflation data released today exceeds expectations, the dollar and bond yields could rise, potentially putting additional pressure on gold. A lower-than-expected inflation reading, however, could weaken expectations of an interest rate hike and provide support for the precious metal. Investors are particularly focused on the monthly core inflation figures.