Wednesday, February 14, 2018

Gold Rebounds From U.S Inflation Data-Driven Losses As Dollar Wilts

Gold prices climbed nearly 2 percent on Wednesday, rebounding from early losses that followed stronger-than-expected U.S. inflation data, as the dollar surrendered gains and equities swung higher. The dollar initially rose after the U.S. Labor Department report showed U.S. consumer prices increased more than expected in January, and traders bet the U.S. Federal Reserve would boost interest rates faster than previously forecast. However, softer-than-forecast retail sales data and an immediate pullback in equities markets sparked concern that the Fed would struggle to raise rates quickly enough to offset inflation pressures. Spot gold was up 1.7 percent at $1,351.81 per ounce by 1:37 p.m. EST (1837 GMT), after reaching $1,355.08, its highest since Jan. 26. U.S. gold futures for April delivery settled up $27.60 per ounce, or 2.1 percent, at $1,358. Bullion was on track for its strongest daily performance since May 2017. Inflation fears generally prompt investors to...

from GoldBroker.com https://www.goldbroker.com/news/gold-rebounds-from-u-s-inflation-data-driven-losses-as-dollar-wilts-1265

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