Gold Rises as Softer U.S. Inflation Eases Fed Rate-Hike Bets

 Gold Rises as Softer U.S. Inflation Eases Fed Rate-Hike Bets

NEW YORK — October 1, 2026

Gold prices edged higher on Thursday after softer-than-expected U.S. inflation data reduced expectations for another Federal Reserve rate hike in October. Spot gold rose about 0.5% to $4,175.19 per ounce at 0417 GMT, according to Reuters.

The August inflation data weakened expectations for an immediate Fed rate increase, with markets pricing the probability of an October hike at about 38%, down from 45% before the report. Lower rate expectations can support gold because bullion does not pay interest.

However, a firm U.S. dollar and elevated Treasury yields continue to limit gold's recovery. Investors are now watching the U.S. September jobs report, due Friday, for further clues about the Federal Reserve's next policy decision.

Key point: Softer inflation is currently providing support for gold, but the direction of the dollar, Treasury yields and U.S. employment data remain important for the market.