Gold rises on higher than expected inflation data

CHICAGO, Oct 13– Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the U.S. inflation data released on Wednesday is higher than expected. U.S. Department of Labor reported on Wednesday that U.S. consumer price index, a measure of inflation, rose 0.4 percent in September, higher than the market expectation of 0.3- percent…

CHICAGO, Oct 13 (Xinhua) — Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the U.S. inflation data released on Wednesday is higher than expected.

The most active gold contract for December delivery rose 35.4 U.S. dollars, or 2.01 percent, to close at 1,794.7 dollars per ounce.

U.S. Department of Labor reported on Wednesday that U.S. consumer price index (CPI), a measure of inflation, rose 0.4 percent in September, higher than the market expectation of 0.3-percent growth. In the 12 months through September, the U.S. CPI increased 5.4 percent after advancing 5.3 percent year-over-year in August.

Weakness in the U.S. dollar and Treasury yields following the inflation data also supported gold.

Shortly after the market closed, the Federal Open Market Committee (FOMC) released the meeting minutes for September. The minutes showed the Federal Reserve’s tapering may begin in mid-November or mid-December at a pace of assets purchase reduction by 15 billion dollars per month.

Silver for December delivery rose 65.6 cents, or 2.91 percent, to close at 23.17 dollars per ounce. Platinum for January delivery rose 12.5 dollars, or 1.24 percent, to close at 1,024.2 dollars per ounce. Enditem