Gold Prices Unchanged After U.S. CPI Shows No Surprise
(Kitco News)- Goldprices remain on the back foot, unchanged on the day, following in-lineconsumer inflation data last month.
Friday,the U.S. Labor Department said its U.S. Consumer Price Index rose 0.2% in July,after increasing 0.1% in June. The in-line inflation print has left annual data unchanged at 2.9%, which indicates little momentum in rising prise pressures.
Monthlycore inflation, which strips out volatile food and energy costs, rose 0.2%,following a 0.2% increase in July. Annualy, inflation increased 2.4%, a tick higher from the previous month.
Goldprices have struggled to find momentum because of a stronger U.S. dollar andare relatively unchanged in their initial reaction to the data. December gold futureslast traded at $1,220.60 an ounce, up 0.6% on the day. Gold prices continue to hover around its recent 12-month lows.
Housing costs was the main contributor to the rise in theheadline index, the report said. The shelter index rose 0.3% in July. Foodcosts also rose slightly last month.
For the second consecutive month, U.S. consumers saw amodest drop in energy prices. The energy index dropped 0.5% last month.Gasoline prices saw a significant drop of 0.6%.
Andrew Grantham, senior economist at CIBC World Markets, said that headline inflation could plateau in the next few months as oil prices have fallen from recent highs. However, he added that muted inflation pressures won't impact the Federal Reserve's planned interest rate hikes for the rest of the year.
By Neils ChristensenFor Kitco News
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