They will look back at these times in the future and just shake their heads in disbelief. No worries, 2018 will be seen as an inflection point where “truth” finally did matter…
“(Kitco News) – Gold prices have lost some of its luster Wednesday as inflation picks up more than expected.”
Inflation bad for gold?
What next? Cotton futures soar on oversupply?
CIGA Wolfgang Rech
Gold Prices Drop Sharply Following Strong Rise In US CPI
February 14, 2018
(Kitco News) – Gold prices have lost some of their luster as inflation picked up more than expected in the first month of the new year.
Wednesday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.5% in January, after increasing 0.3% in December. The increase was stronger than expected as consensus forecasts were calling for a 0.2% increase.
The report said that annual inflation rose 2.1%.
Monthly core inflation, which strips out volatile food and energy costs, rose 0.3%, following a 0.4% increase in December. Economists were expecting to see a 0.2% rise in price pressures.
For the year, core inflation increased 1.8%. While CPI is not the Federal Reserves preferred inflation measures, price pressures are inching closer to its target of 2%.
Gold prices were in positive territory ahead of the report but have given up its gains in the initial reaction. April gold futures last traded at $1,3,325, down 0.41% on the day.