Gold Prices Slip as Fed Rate Outlook Shifts; Silver Hits 11-Month Low

AI desk brief

Gold fell 0.4% to $4,024/oz after the Fed held rates at 3.75–4.00% and stronger-than-expected US data pushed markets to price a slightly firmer policy path; silver dropped 2.6% to $52.39/oz, its lowest since late November last year, widening the gold/silver ratio to around 77, an 11-month high. Third-quarter US GDP rose 3.4% annualized versus 3.2% expected, while September PCE inflation came in at 3.6% and core PCE at 3.1%, reinforcing the hawkish macro backdrop for metals.

FedWatch showed the probability of a December hike rising to 83.3% from 79.6% intraday, while the expected September 2027 policy rate edged up to 4.58%. Ten-year Treasury yields eased to 4.965% from 5.045% ahead of the data, but the dollar firmed slightly; Saxo’s Ole Hansen said short-term deleveraging could weigh on gold even as longer-term diversification and geopolitical/fiscal hedging demand remain supportive.