US Stock Market Move | CPI supresses expectation of significant interest rate cuts, gold and silver stocks fall

On Wednesday, gold and silver stocks in the US fell. As of the press time, Gold Fields Limited Sponsored ADR (GFI.US) dropped more than 1.8%, Harmony Gold Mining Co. Ltd. Sponsored ADR (HMY.US) dropped more than 1.3%, Silvercorp Metals (SVM.US) dropped more than 1%, and Barrick Gold Corporation (GOLD.US) fell by 0.18%. On the news front, with US inflation data prompting investors to lower their expectations of a significant rate cut by the Federal Reserve next week, the dollar and US Treasury yields strengthened, causing gold prices to fall. US CPI for August rose only slightly, but core inflation showed some stickiness, which may prevent the Fed from cutting rates by 50 basis points next week. RJO Futures senior market strategist Bob Haberkorn said, "Inflation is still there. Consumers can still feel it. If they only cut by half (25 basis points), it means they are conceding defeat. Cutting by 25 basis points is almost what they have to do right now." New York independent metal trader Tai Wong said, "The rebound in core CPI more or less consolidates the 25 basis point rate cut next week... It may take some time for gold prices to hit new highs again." The current market focus will shift to US PPI data and initial jobless claims to be released on Thursday.