Gold futures rose in New York after signs of low U.S. inflation indicated Federal Reserve policy makers meeting next week have more room to maintain their $85 billion of monthly bond purchases.
Wholesale prices declined for a third straight month in November, reflecting lower costs for energy and cars, a Labor Department report showed today. Bullion surged 70 percent from the end of 2008 through June 2011 as the Fed bought debt and kept interest rates near zero percent to boost economic growth amid the most-severe global recession since World War II.
“If you believe the government that inflation is non-existent, that should be enough to take the Fed tapering talk off the table for good next week,” Peter Hug, the global trading director of Kitco Metals Inc. in Montreal, said in an e-mailed report.
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