LONDON: Gold rose 1 per cent on Wednesday after weaker-than-expected US inflation data for May knocked the dollar index to nine-month lows ahead of a keenly awaited Federal Reserve policy statement.
However, an unexpected month-on-month drop in US consumer prices and retail sales shown in data released on Wednesday suggested inflation pressures are moderating, which could have an impact on further interest rate hikes this year. Spot gold was up 0.1pc at $1,277.74 an ounce at 1330 GMT, while US gold futures for August delivery were up $11.30 an ounce at $1,279.79.
The metal peaked at $1,279.37 as the dollar index fell to its lowest since Nov. 9 following the release of weaker-than-expected US CPI and retail sales data.
Silver also climbed, up 2.2pc at $17.23 an ounce after hitting its lowest in nearly a month the previous day at $16.68. Platinum, which also hit a near one-month low of $918.50 on Tuesday, was up 2.3pc at $942.50 an ounce. Palladium, which hit a 16-year high last week at $914.70, was down 0.1pc at $883 an ounce.
Published in Dawn, June 15th, 2017
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