Gold falls at close; silver drops over 1%

Gold prices rose as oil prices retreated, while investors awaited US inflation data for fresh clues on the Federal Reserve’s interest rate path

Gold and silver prices fell for a second straight session on Tuesday as investors awaited US inflation data and remarks from the Federal Reserve chair later in the week for clues on the monetary policy outlook.

US consumer price inflation data are due tomorrow, Oct. 14, followed by producer prices on Thursday. Fed Chair Kevin Warsh is also scheduled to speak at the annual meetings of the International Monetary Fund and World Bank.

Fed Governor Christopher Waller said on Tuesday that the recent rise in US bond yields reflected strong economic growth rather than higher inflation expectations, which he described as “well anchored.”

Elsewhere, Commerzbank analysts said in a note that higher interest rates had become a double-edged sword for gold. They raise the opportunity cost of holding non-yielding assets such as bullion, but also increase debt burdens for many governments, fueling concerns over debt sustainability.