Gold prices jump 1% as U.S. CPI rises 7.7% for the year in October – by Neils Christensen (Kitco News – November 10, 2022)

(Kitco News) – Gold prices are on the move, jumping 1% immediately following weaker-than-expected inflation numbers. Thursday, the U.S. Labor Department said its much-anticipated Consumer Price Index rose 0.4% last month after a 0.4% rise in September. Economists were looking for an increase of 0.6%.

For the year, inflation pressures rose 7.7%, significantly below expectations for a 7.9% rise. In September, annual inflation was 8.2%. “This was the smallest 12-month increase since the period ending January 2022,” the report said.

The gold market is seeing a jolt of new momentum as the weak inflation data is shifting expectations for U.S. monetary policy. December gold futures last traded at $1,730.50 an ounce, up nearly 1% on the day.

Core inflation, which strips out food and energy prices, also showed signs of cooling, rising 0.3%, down from the 0.6% rise in September. Economists were expecting to see a 0.5% rise. For the year, core inflation is up 6.3%, down from September’s annual increase of 6.6%.

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