Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Gold suffered its biggest loss in more than two weeks on Thursday after hotter-than-expected US inflation data set the stage for more aggressive interest rate hikes by the Federal Reserve.
Spot gold tumbled 1.6% to $1,646.10 per ounce by 11:00 a.m. ET, its lowest since September 27. Three-month gold futures were down 1.4% to $1,654.40 per ounce in New York.
[Click here for an interactive chart of gold prices]
The core consumer price index, which excludes food and energy, increased 6.6% from a year ago, the highest level since 1982, Labor Department data showed. Overall CPI increased 0.4% last month, and was up 8.2% from a year earlier.
Both the US dollar and Treasury yields spiked after the print, weighing on bullion since the metal is priced in the greenback and pays no interest.
The Fed’s aggressive moves have strained bond and currency markets around the world this year, while failing to significantly cool the US labor market. It has also hurt gold, sending it down about 20% from its March peak.
Now the US central bank looks set to carry on more big hikes, the precious metal could come under further pressure.
“The narrative of 75-basis-point hike in November and then slowing to 50 basis-point is in some jeopardy,” said Tai Wong, a senior trader at Heraeus Precious Metals in New York, noting that the CPI report suggests inflation may be more stubborn than investors believed.
In a Bloomberg note, Wong said a 75-basis-point hike in November is “a total done deal.”
Officials from the US central bank have committed to raising interest rates to a restrictive level in the near future, although some emphasized the importance of calibrating the increases to mitigate risk.
(With files from Bloomberg)
