WASHINGTON (dpa-AFX) - Gold prices climbed higher to settle on a strong note on Wednesday as the dollar lost ground after soft consumer price inflation data from the Labor Department eased concerns about the outlook for interest rates ahead of the monetary policy announcement by the Federal Reserve.
The dollar index dropped to 1o4.26 around mid morning, and was at 104.37 a little while ago, down 0.81% from the previous close.
Gold futures for June ended higher by $28.50 or about 1.25% at $2,336.00 an ounce.
Silver futures for June ended higher by $1.043 or about 3.6% at $30.176 an ounce, while Copper futures for July climbed to 4.5630, gaining $0.0530 or about 1.18%.
The U.S. Labor Department said its consumer price index came in unchanged in May after rising by 0.3% in April. Economists had expected consumer prices to inch up by 0.1%. The unchanged reading came as a 3.5% nosedive by gasoline prices helped offset a continued increase in prices for shelter.
Core consumer prices rose by 0.2% in May after climbing by 0.3% in April. Core prices were expected to increase by another 0.3%.
The report also said the annual rate of consumer price growth slowed to 3.3% in May from 3.4% in April. Economists had expected the pace of growth to remain unchanged. The annual rate of core consumer price growth also slowed to 3.4% in May from 3.6% in April. The pace of growth was expected to dip to 3.5%.
The U.S. central bank is widely expected to leave interest rates unchanged, but traders will pay close attention to the accompanying statement as well as officials' latest projections for the economy and interest rates.
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