Weak Inflation Data Push Gold Prices To Session Highs

New York (Apr 11)  Gold prices pushed to session highs after U.S. inflation data came in weaker than expected.

Wednesday, the U.S. Labor Department said its U.S. Consumer Price Index fell 0.1% in March, after increasing 0.2% in February. The drop was weaker than expected as consensus forecasts were calling for an unchanged reading.

The decrease in inflation pressures did not have a major impact on the annual data. For the year CPI rise 2.4%, its highest read in a year.

Monthly core inflation, which strips out volatile food and energy costs, rose 0.2%, following a 0.2% increase in February. The data was in line with economist expectations.

Annual core inflation jumped to 2.1% last month, its highest level in more than a year.

The weak inflation data was positive for the gold market, which is also benefiting from rising geopolitical tension. Ahead of the report gold was trading at a two-week high after President Donald Trump issued a warning on Twitter, of imminent military action in Syria. June Comex gold futures last traded at $1,258.20 an ounce, up almost 1% on the day.

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