US gold futures settled 1.7% lower on October 14 after inflation report

US December gold futures settled at $4,107.90 an ounce on October 14, down 1.7%, Reuters reported. The decline followed a report showing faster US inflation.

Annual US inflation reached 3.7% in September, up from 3.4% in August. Analysts surveyed by Trading Economics had expected 3.6%. Core inflation, excluding food and energy, accelerated from 2.4% to 2.6%.

David Meger of High Ridge Futures linked gold's decline to a stronger dollar and increased expectations of a Federal Reserve rate rise following the price report.

CME FedWatch figures cited by Reuters on the evening of October 14 showed traders assigning roughly a 42% probability to an October rate increase. That assessment was about 22% before the inflation release.