(Kitco News) - Gold prices are under pressure struggling to finding some momentum as inflation pressures remain relatively tame, rising in line with expectations.
Tuesday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.2% in December, after a 0.3% rise in November. The data in line with consensus forecasts.
The report said that annual headline inflation increased 2.3% last month.
Stripping out volatile food and energy prices, core inflation rose slightly less than expected, increasing 0.1% in last month, following November’s rise of 0.2%. Annual core inflation rose to 2.3%. Core inflation has held steady at 2.3% for the last three months.
According to some commodity analysts, the low inflation data is positive for gold as it supports further loose monetary policy from the Federal Reserve. February gold futures last traded at $1,545.6 an ounce, up 0.32% on the day.
“The Fed's stated goal of boosting underlying inflation didn't come to fruition in December,” said Royce Mendes, senior economist at CIBC. “With core PCE inflation tracking 1.6% as of November, the Fed likely didn't make any progress towards its inflation target to end 2019.”
Mendes added that the data miss versus expectations should weigh on the U.S. dollar and fixed income, which both should push gold prices higher.
2020-01-14 13:37:00Z
https://www.kitco.com/news/2020-01-14/Gold-price-struggling-to-find-momentum-following-mixed-U-S-CPI-data.html
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