Gold edges higher near $4,000 as Fed hike bets cap rebound

Gold prices rose on Wednesday, November 11, but remained anchored near the $4,000 per ounce threshold following a sharp selloff in the previous session driven by hotter-than-expected U.S. inflation data and hawkish Federal Reserve commentary.

By 0916 GMT, spot gold climbed 0.5% to $4,051.31 per ounce, recovering slightly after sliding as much as 3% to $4,013.29 on Tuesday. U.S. gold futures for December delivery gained 0.7% to $4,059 per ounce. Among other precious metals, spot silver rose 2.7% to $52.87 per ounce, while palladium surged 4.1% to $1,066.66.

U.S. consumer prices increased 0.4% in October, exceeding market forecasts of a 0.3% rise. Following the inflation print, traders raised the implied probability of a December Fed rate hike to 100%, up from 84% prior to the release, according to the CME FedWatch tool, while increasing bets on a larger 50-basis-point move after hawkish remarks from Fed Governor Christopher Waller, Philadelphia Fed President Anna Paulson, and Fed Vice Chair for Supervision Michelle Bowman.