Gold prices rose Wednesday morning as subdued U.S. inflation data quelled speculation the Federal Reserve will raise interest rates early next year.
A rate hike this afternoon is a shoo-in at the final meeting of 2017, but the Fed will likely signal a wait-and-see approach for 2018.
The Labor Department said on Wednesday its Consumer Price Index increased 0.4 percent last month after edging up 0.1 percent in October. However, the increase was largely attributable to a spike in gas prices that has since abated.
Excluding the volatile food and energy components, consumer prices ticked up only 0.1 percent.
The Fed’s interest rate decision will be made public at 2 pm ET, with a press conference from outgoing Fed Chair Janet Yellen to follow.
Gold was up $7.50 a at $1249 an ounce, improving from a 5-month low.
The material has been provided by InstaForex Company – www.instaforex.com
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