WASHINGTON (dpa-AFX) - Gold prices have moved sharply lower during trading on Wednesday, extending the downward move seen over the two previous sessions.
The price of gold plunged early in the session and remains firmly negative. Gold for December delivery has slumped $75.20 or 1.8 percent to $4,102.10 an ounce.
The steep drop by the price of gold comes after the Labor Department released its closely watched report on consumer price inflation in the month of September.
While the report showed consumer prices grew in line with estimates, it also showed a bigger than expected increase in core consumer prices, which exclude food and energy prices.
The report said consumer prices climbed by 0.6 percent in September after rising by 0.4 percent in August. The increase in prices matched economist estimates.
The Labor Department also said the annual rate of consumer price growth jumped to 3.7 percent in September from 3.4 percent in August, which was also in line with expectations.
Meanwhile, the report said core consumer prices, which exclude food and energy prices, rose by 0.3 percent for the second straight month. Economists had expected core prices to edge up by 0.2 percent.
The annual rate of core consumer price growth accelerated to 2.6 percent in September from 2.4 percent in August, coming in slightly above economist estimates for 2.5 percent growth.
The bigger than expected increase in core prices has led to renewed concerns about the outlook for interest rates ahead of the Federal Reserve's next monetary policy meeting later this month.
According to CME Group's FedWatch Tool, the chances the Fed will raise rates by a quarter point have jumped to 39.3 percent following the data compared to 22.1 percent on Tuesday.
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