After the publication of US inflation data, gold rose and the dollar fell

Gold futures prices rose in trading on Wednesday after US Department of Labor data showed a decline in the core consumer price inflation rate in the United States, which allayed concerns about US interest rates.
The decline in value against other major currencies and the decline in bond yields also enhanced the appeal of the yellow metal.

Dollar and gold prices

In the exchange market, the dollar value index against major currencies declined to 108.60 points after the release of inflation data, before rising slightly to 109.11 points, a decrease of 0.15% from its level yesterday.

The price of the yellow metal rose today by $35, or 1.3%, to $2712.50 per ounce for delivery this month.
The price of silver also rose by $1.1870, or 3.94%, to $31.319 per ounce for delivery this month, and the price of copper rose by $0.0525, or 1.22%, to $4.3630 per pound.
In terms of economic data, the inflation rate rose in the United States last December, with the prices of gasoline, eggs, and used cars rising. However, there were also signs of a slight decline in underlying price pressures.

High price index

The Ministry of Labor report issued on Wednesday showed that the consumer price index rose by 2.9% in December compared to the corresponding month last year, which is its highest level since July.

This was the third consecutive rise after inflation fell to its lowest level in three and a half years, reaching 2.4% in September.
On a monthly basis, the consumer price index rose by 0.4% last month, while analysts had expected it to rise by 0.3%, which is the same rate of increase during November.
However, excluding the volatile food and energy categories, so-called core inflation fell to 3.2%, after remaining steady at 3.3% for three consecutive months.