"The fact that the CPI is in line gives the Fed more room to continue easing"
Gold rose on Tuesday to snap two days of hefty losses lifted by a broad dollar drop and by data showing U.S. consumer prices climbed but not enough to derail the Federal Reserve's ultra-easy monetary policy.
The metal rebounded from Monday's one-month low, after U.S. Labor Department said U.S. Consumer Price Index climbed 0.6 percent in September, matching analysts' expectations and August' s reading. Solid gains in U.S. equities also underpinned
bullion.
Gold has rallied $200 an ounce in the last two months due to hopes that the Fed's monetary stimulus might trigger inflation. ...
"From an inflation standpoint, the fact that the CPI is in line gives the Fed more room to continue easing,'' said Adam Sarhan, CEO of Sarhan Capital.
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