Gold Rebounds to $4,151 After Hot US Inflation Data Sparks Volatile Selloff

Gold recovered toward $4,151 per ounce, fully erasing steep losses sustained following hotter-than-expected US inflation data. Bullion initially dropped nearly $100 to an intraday low of $4,073 after September headline Consumer Price Index accelerated to 3.7% year-over-year and core inflation reached 2.6%. The data lifted market-implied odds of an October Federal Reserve interest rate hike from 22% to as high as 49%, sending the 10-year Treasury yield toward 5.27% and lifting the US Dollar Index. Gold reversed losses as Treasury yields retreated, Fed comments reduced urgency for an immediate October hike, and institutional buyers defended the $4,100 support zone.