Gold futures settled higher on Tuesday, as the dollar turned weak after data from the Labor Department showed consumer prices increased by slightly less than expected in the month of August.
The dollar index, which dropped to 92.32 soon after the release of inflation data, recovered subsequently and was last seen at 92.50, down nearly 0.2% from the previous close.
Gold futures ended down by $12.70 or about 0.7% at $1,807.10 an ounce, after rising to a high of $1,810.60.
Silver futures for December ended higher by $0.089 at $23.885 an ounce, while Copper futures for December settled at $4.3210 per pound, down $0.0460 from the previous session.
The U.S. Labor Department said its consumer price index rose by 0.3% in August after climbing by 0.5% in July. Economists had expected consumer prices to increase by 0.4%.
The somewhat tame U.S. inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus. However, comments from economists suggest the central bank might begin tapering its asset purchases in December.
The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.
The material has been provided by InstaForex Company – www.instaforex.com