Hot CPI Data Sends Gold Down 1.6%, Silver Plunges 6.1% as Rate Hike Odds Jump
RING sits 25% above its 52-week low of $58.21 on light trading volume (0.4× avg).
Summary
September CPI came in at 0.6% monthly and 3.7% annually, beating the 3.6% consensus and pushing rate hike odds for this month from 22% to 42%. The dollar index rose 0.5% and 10-year Treasury yields climbed, making gold more expensive for foreign buyers. Front-month gold fell 1.6% to $4,084.80/oz, its lowest since August 3, while silver dropped 6.1% to $55.55/oz, the lowest since November last year. This is the third consecutive session of declines for both metals. The hotter inflation print directly pressures the iShares Gold Trust, which tracks gold prices, and the sharp move in silver adds to the negative sentiment across precious metals.
At the time of this announcement, RING was trading at $72.65 on NASDAQ in the Finance sector. The 52-week trading range was $58.21 to $100.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.