Gold prices holding its ground following muted U.S. CPI data

(Kitco News) - The gold market is struggling to find any solid direction on Friday as U.S. inflation pressures remain elevated but have not accelerated. However, analysts note that gold could face continued headwinds as the latest inflation data could force the Federal Reserve to raise interest rates next week. The Consumer Price Index (CPI) rose 0.4% in August, following a 0.1% increase in July, the U.S. Bureau of Labor Statistics announced Tuesday. The inflation data were in line with economists’ expectations. Over the past 12 months, headline inflation rose 3.4%, in line with economists’ expectations. Meanwhile, core CPI, which strips out volatile food and energy prices, rose 0.3% last month, up from 0.2% in July. Monthly core inflation was slightly hotter than expected, as consensus forecasts projected a 0.2% increase. Over the past 12 months, annual core inflation rose 2.4%, down slightly from 2.5% in July and in line with consensus estimates. Gold has managed to hold on to modest gains in its initial reaction to the latest inflation data. Spot gold last traded at $4,337.20 an ounce, up 0.5% on the day. Neils Christensen Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @KitcoNewsNOW Tags: gold gold price US inflation US monetary policy US interest rates Federal Reserve Central banks us economy Share Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.