Gold prices managed to crack the $1800 mark late this evening Asia time (GMT+7), following the release of U.S. Consumer Price Index (CPI) figures. The silver price slipped back below the $24 mark.
Gold prices rose 0.69% to $1807 per ounce. This allowed gold to regain the important $1800 mark.
The silver price increased by 0.44% to $23.92 per ounce. Thus, silver is just below the $24 mark.
The inflation figures for the month of August turned out just below expectations. Year-on-Year (YoY) the CPI is at 5.3% before experts had predicted 5.4%. Core CPI rose 0.1% after an increase of 0.3% was predicted. Core CPI excludes the food index and energy index. The energy index rose 2% and the food index rose 0.4% from the previous month. Gasoline prices increased by 2.8%.
Since the inflation figures released today are below expectations, these are arguments for the side that continues to want a loose monetary policy of the Fed. This has led to sell-offs in the U.S. Dollar Index and lifted gold higher.
It remains exciting whether the Fed will start its tapering planned for this year and the looser monetary policy will lay down. Positive for the gold price for the moment is the jump above the $1800 mark.