Gold holds near $4,115 as inflation data fuels Fed rate-hike speculation

Gold prices remained largely flat on Thursday, with spot gold quoted at $4,114.57 per ounce after reaching a one-week low the previous day, the lowest since early October. The decline was triggered by September US consumer-price numbers that rose faster than expected, largely because of a jump in gasoline prices. This inflation surprise pushed the CME FedWatch Tool's estimate of a Federal Reserve rate hike this month up to roughly 32 percent, from 22 percent before the data.

San Francisco Fed president Mary Daly said the central bank will probably need to raise short-term rates further, but she did not anticipate a move at the Oct. 27-28 meeting. Investors are now focused on upcoming producer-price index and retail-sales releases. In the broader metals market, spot silver edged higher, platinum slipped, and palladium rose modestly.