Gold Gains Slightly as US Inflation Rises and Dollar Falls


Gold coins and inflation

Gold snapped a two-session losing streak Thursday after a report showed higher US inflation and as stocks and the dollar turned down.

Gold for February delivery edged up $1.90, or 0.2%, to end at $1,240.20 an ounce on the Comex division of the New York Mercantile Exchange. Gold prices traded from a low of $1,235.80 to a high of $1,244.90.

"Inflation is back on everyone’s radar," Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview according to Bloomberg News. "The safe-haven appeal is back to an extent."

Inflation in the U.S. advanced 0.3% in December, the Labor Department reported Thursday. The increase was the biggest in six months and followed a flat reading in the prior month. Still, most economists consider inflation as tame overall. On a 12-month basis and excluding volatile food and gas prices, the core rate increased 1.7% for a fourth month in a row. That is below the Fed’s 2% target. (Check our Inflation Calculator to see how the buying power of the dollar has changed over time.)

Gold prices are lower for the week so far by $6.70. Losses in the previous two sessions were attributed to strength in stocks and the dollar.

"The last couple of days saw the equity markets and the U.S. dollar bounce, which resulted in modest selling in the metals," MarketWatch quoted Peter Hug, global trading director at Kitco Metals Inc.

In other precious metals futures on Thursday:

  • Falling for a third session, silver for March delivery declined 8 cents, or 0.4%, to $20.05 an ounce. Prices ranged from $19.97 to $20.25. Silver is down about 17 cents since Friday.

  • Up for the first time in three days, April platinum added $2.90, or 0.2%, to $1,431.50 an ounce, trading between $1,418.20 and $1,437.30.

  • Palladium for March delivery shed a dime to $743.90 an ounce after rising 0.7% on Wednesday. Prices ranged from $738 to $746.55.

London Fix Precious Metals

London precious metals fixings split as well, though only silver declined. In contrasting the London fix prices from Wednesday PM to Thursday PM:

  • Gold added $5.50, or 0.4%, to $1,241.50 an ounce,
  • Silver fell 9 cents, or 0.5%, to $20.00 an ounce,
  • Platinum gained $8, or 0.6%, to $1,424 an ounce, and
  • Palladium rose $7, or 1%, to $741 an ounce

US Mint Bullion Coin Sales in January

The following table offers montly United States Mint bullion coin sales through Jan. 14 and in December.

American Eagle and Buffalo Bullion Sales (# of coins)
January 2014 Sales December 2013 Sales
American Eagle Gold Bullion Coins 67,000 56,000
American Buffalo Gold Bullion Coins 33,000 7,000
American Eagle Silver Bullion Coins 3,371,500 1,200,000


Notify of

Inline Feedbacks
View all comments