Gold, Silver Fall as Rate-Hike Betting Jumps on Strong Inflation Data

AI desk brief

Gold fell as low as $4033/oz and silver below $52 after US CPI inflation reached 3.7% year-on-year, while December Fed betting shifted to roughly 85% odds of a quarter-point hike and 15% of a half-point increase. Both metals erased Monday’s gains; MKS Pamp strategist Nicky Shiels attributed selling into rallies to inflation, US data and war risks sustaining tightening pressure. Further tightening could weigh on bullion, although nominal-rate expectations alone do not establish real yields. Platinum and palladium held above the previous week’s finish despite retreating from recent highs.