Gold falls as inflation persists

Chicago [US], October 13: Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as economic data show inflation persists in the United States.
The most active gold contract for December delivery fell 8.5 U.S. dollars, or 0.5 percent, to close at 1,677.5 dollars per ounce.
The U.S. Labor Department reported Wednesday that the U.S. producer price index (PPI), a measure of prices that U.S. businesses get for the goods and services they produce, grew 0.4 percent in September, higher than the market estimate of a 0.2-percent gain.
The higher than expected inflation data strengthened market expectation that the Federal Reserve will continue to aggressively raise interest rates, thus dampening gold.
Shortly after the floor trading of gold closes, the minutes of the Federal Open Market Committee meeting is released. The minutes indicated that seeing little evidence of inflation falling appreciably, the Federal Reserve aims to keep interest rates higher until it sees "compelling" evidence of declining inflation, holding risk of too much action against inflation is less costly than too little action.
Silver for December delivery fell 54.9 cents, or 2.82 percent, to close at 18.938 dollars per ounce. Platinum for January delivery fell 18.1 dollars, or 2.01 percent, to close at 881 dollars per ounce.
Source: Xinhua