Gold Pares Drop after US Inflation Sets Stage for Big Fed Hike
- Core CPI rose more than forecast to 40-year high in September
- Dollar sinks as pound climbs amid bets on UK fiscal U-turn
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Gold pared early declines after hotter-than-expected US inflation data set the stage for more aggressive interest-rate hikes by the Federal Reserve. Copper erased losses.
The rebound in bullion came as the dollar sank and the British pound climbed amid reports that the UK government officials are working on a U-turn of the sweeping tax cuts proposed by Prime Minister Liz Truss. A softer dollar boosted the precious metal which is priced in the greenback.