Gold prices rebound to lows as US core CPI hits highest since 1992 – –

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Gold prices rebound to lows as US core CPI hits highest since 1992 – –


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(Kitco News) – Gold prices are trying to rebound from their session lows, following a stronger than expected US consumer price.

On Thursday, the US Department of Labor said its US consumer price index rose 0.6% in May, after rising 0.8% in April. The data beat consensus forecast, with economists forecasting a 0.4% increase.

For the year, the report said that headline inflation rose 5.0%. “This was the

largest 12-month increase since an increase of 5.4% for the period ending August 2008. ”

Meanwhile, the core CPI, which excludes food and energy costs, rose 0.7% in May, compared to an increase of 0.9% in April. Economists expected an increase of 0.5%.

For the year, the core CPI is up 3.8%, the largest 12-month increase since the period ending June 1992.

The gold market appears to be catching a small bid despite following the headlines. August gold futures traded for the last time at $ 1,885.50 an ounce, down nearly 0.50% on the day. Prior to the report, gold prices were down about 1%.

Some market analysts have said the stronger inflation data is negative for gold as it could force the Federal Reserve to tighten its ultra-accommodative monetary policy and cut its monthly bond buying program earlier than planned.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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