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%.
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