Gold Edges Lower as Hot US Inflation Bolsters Fed Rate-Hike Bets

Gold and copper prices edged lower following the release of hotter-than-expected US inflation data. This economic indicator has increased market expectations that the Federal Reserve will implement interest rate hikes later this week. While gold reacted to the inflation surge, copper faced additional pressure as rising US interest rates could potentially dampen global demand within the manufacturing and construction sectors. Both commodities are reacting to the anticipated shift in Federal Reserve monetary policy regarding interest rates.