3 months ago
Commodities

Gold Prices Jump to Session Highs After U.S. Inflation Data

Investing.com - Gold prices ticked higher on Wednesday, hitting the best levels of the session after data showed that U.S.

Investing.com - Gold prices ticked higher on Wednesday, hitting the best levels of the session after data showed that U.S. consumer price growth slowed in November.

Comex gold futures were up $4, or about 0.3%, at $1,251.20 a troy ounce by 8:45 AM ET (13:45 GMT), not far from a five-month peak of $1,256.60 touched at the start of the week.

Meanwhile, spot gold was trading at $1,246.28 per ounce, up $3.30, or 0.25%.

The Labor Department said its consumer price index was unchanged from a month earlier, slowing from the 0.3% increase seen in October. Analysts had forecast a 0.1% increase.

In the 12 months through November, consumer prices increased 2.2%, in line with forecasts and down from 2.5% in October.

Excluding the volatile food and energy components, the core CPI edged up 0.2%, matching expectations. The annual increase in the core CPI was 2.2%.

The data underlined expectations that the Federal Reserve will slow its pace of rate hikes next year.

Lower interest rates can give gold a lift, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down roughly 0.2% at 97.15.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

In other metals action, silver futures gained 15.9 cents, or about 1.1%, at $14.78 a troy ounce.

Platinum was up 1% at $793.80, while palladium rose 0.9% to $1,187.55.

Elsewhere, March copper held steady at $2.767 a pound.