US September Core Inflation Tops Expectations; Gold and Silver Plunge as Markets Bet on Another Fed Rate Hike - BigGo Finance

US September core inflation came in above expectations, according to BigGo Finance, prompting a sharp reaction across precious metals markets. Gold and silver prices fell as traders moved to price in the possibility of another Federal Reserve rate hike. Core inflation strips out volatile food and energy costs, which is why markets treat it as a cleaner read on underlying price pressure — and why an upside surprise tends to carry outsized weight in rate expectations.

The logic linking inflation to metals is straightforward. Higher interest rates raise the opportunity cost of holding non-yielding assets like gold and silver, since investors can earn returns elsewhere. When data suggests the Fed may tighten further, that calculus shifts, and bullion often faces selling pressure. The inverse relationship is not mechanical, but it is a key channel through which monetary policy expectations transmit into commodity prices.

What to watch next: subsequent inflation readings, Fed communications, and the dollar's direction, since a stronger dollar can add pressure on dollar-denominated metals. Whether this move reflects a durable repricing or a short-term reaction to a single data point will depend on whether the inflation trend confirms it.