Gold Lower After Strong US Data

Gold remains under considerable pressure after inflation data sees its biggest rise in four years.

Thursday, the U.S. Labor Department said that the Consumer Price Index for January rose 0.6%, following a 0.3% rise in December. Economists were expecting to see a rise of 0.3%.

“The January increase was the largest seasonally adjusted all items increase since February 2013,” the report said.

The report said that annual inflation is now at 2.5%, up from December’s reading of 2.1%. The report noted that rising gasoline prices accounted for nearly half the increase in inflation. Last month the gasoline index rose 7.8%.

After stripping out volatile food and energy prices, core inflation rose 0.3% last month, following an increase of 0.2% in December; consensus forecasts were calling for a rise of 0.2%.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza