10.11.2026 17:22
October inflation data in the US coming in above expectations caused a sharp decline in the gold market. While gold per ounce fell to as low as $4,039, losses exceeded 2.60%. Domestically, gram gold fell from 6,580 lira to as low as 6,540 lira.
The October inflation data that markets in the US had been eagerly awaiting were released. The Consumer Price Index (CPI) rose by 0.4% month-on-month in October, exceeding market expectations. As inflation came in above forecasts, gold prices saw a sharp decline.
CORE INFLATION ALSO ROSE
Core CPI, which excludes food and energy prices, increased by 0.3% in October. The monthly rise in core inflation had also been recorded at 0.3% in August and September. Thus, core inflation rose at the same rate for three consecutive months.
SHARP DROP IN GOLD
Following the inflation data from the US, selling pressure on gold prices increased. Spot gold fell as low as $4,039 an ounce, while its loss exceeded 2.60%. The data coming in above expectations increased price volatility in the markets.
GRAM GOLD RETREATED TO 6,540 LIRA
The decline in global markets was also reflected in domestic gram gold prices. Gram gold, which was trading around 6,580 lira before the inflation data were released, fell to as low as 6,540 lira after the announcement. Thus, gram gold experienced a decline of about 40 lira in a short time.
INCREASE IN FOOD AND SHELTER COSTS
In the US in October, shelter costs rose 0.3%, accounting for more than 30% of the monthly increase in the overall index. The increase in shelter costs had been 0.4% in September. Food prices rose 0.5% in October after showing no change in September. Food consumed at home rose 0.4%, while food away from home rose 0.5%. Beef prices rose 0.9%, while prices for fruits and vegetables and dairy products rose 0.6%. Non-alcoholic beverage prices, however, fell 0.3%.
THE INCREASE IN ENERGY PRICES SLOWED
Energy prices rose 0.7% in October after a 5.2% increase in September. Gasoline prices rose 1.0% after a 9.1% increase the previous month. The annual increase in gasoline prices was 37.4%. Electricity prices rose 0.9% and fuel oil prices rose 2.0%, while natural gas prices fell 0.8%. In October, used car and truck prices fell 1.2%, and the year-on-year decline was 3.3%. New vehicle prices rose 0.2% month-on-month. Transportation services and recreation prices each rose 0.8%, and motor vehicle insurance prices rose 0.7%. Health care services prices rose 0.3%, and hospital services prices rose 0.8%.
NO CHANGE IN REAL WEEKLY EARNINGS
In the US, real average weekly earnings showed no change in October compared with the previous month. The unadjusted CPI index, meanwhile, rose to 337.511 in October, with the monthly increase recorded at 0.2%.