US September Core Inflation Tops Expectations; Gold and Silver Plunge as Markets Bet on Another Fed Rate Hike - BigGo Finance

US September core inflation came in above expectations, according to BigGo Finance, prompting a sharp selloff in precious metals. Gold and silver plunged as market participants moved to price in the possibility of another Federal Reserve rate hike. Core inflation strips out volatile food and energy prices, so it is closely watched as a gauge of underlying price pressure in the economy.

The reaction reflects how rate expectations feed into asset prices. Higher interest rates raise the opportunity cost of holding non-yielding assets such as gold and silver, which can weigh on demand. At the same time, a stronger rate outlook typically supports the dollar, creating another headwind for metals priced in the US currency.

What to watch next is whether subsequent inflation and labor data confirm or soften this narrative, along with signals from Fed officials. Precious metals remain sensitive to shifts in real yields and the dollar, so markets will likely stay focused on how the rate path evolves rather than on any single print.