The U.S. dollar steadied on Thursday despite the sharp fall in U.S. bond yields after Wednesday's inflation data as market focus shifted to Donald Trump's presidential inauguration and possible inflationary impact of his policies. Meanwhile the yen rose against the dollar and the euro as investors expected the Bank of Japan to hike rates next week. Core U.S. inflation dipped to 0.2% month-on-month in December from 0.3% in November, as expected, while the annualised 4.2% reading came below the 3.3% forecast. Traders who have been growing more worried about inflation responded with relief,...
Gold rose to its highest in a month after a surprise slowdown in U.S. inflation revived expectations for a Federal Reserve interest rate cut this year. Bullion traded at more than $2,700 an ounce after the consumer price index — which excludes food and energy costs — rose 0.2% after a 0.3% increase over four months. That suggests U.S. officials may have room to ease policy sooner than previously thought. Source: Bloomberg
Gold traded at the highest in a month mid-afternoon on Thursday, climbing for a third day as the dollar and yields moved lower after U.S. retail sales rose less than expected last month. Gold for February delivery was last seen up US$34.50 to US$2,752.30 per ounce, the highest since Dec.11. The U.S. Commerce Department on Thursday reported retail sales rose by 0.4% in December, down from a revised 0.8% in November and under expectations for a 0.5% monthly rise according to Marketwatch. The data follows on a slight drop in the core Consumer Price Index, excluding food and energy, reported...