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(Kitco News) – Gold prices are trying to drop their session lows, following a stronger-than-expected US consumer price.
On Thursday, the US Department of Labor said the US consumer price index rose 0.6% in May, after rising 0.8% in April. The data beat the consensus forecast, as economists forecast growth of 0.4%.
For the year, the report said that headline inflation rose 5.0%. “This was the
the largest 12-month increase of 5.4% for the period ending August 2008. “
Meanwhile, the main consumer price index, which eliminates food and energy spending, rose 0.7% in May from 0.9% in April. Economists expected growth of 0.5%.
For the year, the main CPI increased by 3.8%, which is the largest 1
The gold market seems to be catching a small supply, although it follows the strong title number. August gold futures traded at $ 1,885.50 an ounce in August, down nearly 50 percent for the day. The title of the report, gold prices fell by about 1%.
Some market analysts say stronger inflation figures are negative for gold, as it could force the Federal Reserve to tighten its ultra-weak monetary policy and cut its monthly bond-buying program earlier than expected.
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