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

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.

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