Gold Falls Most in Four Weeks on Signs of Tame Inflation
This article is for subscribers only.
Gold futures posted the biggest drop in almost four weeks as U.S. inflation concerns waned, eroding demand for the metal as a hedge against rising consumer prices.
A government report today showed an index of inflation tied to spending patterns was unchanged in December from November. Excluding food and energy costs, prices climbed 1.4 percent in 2012, compared with a 1.9 percent increase in the previous year. Inflation “has been running somewhat below the committee’s longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices,” the Federal Open Market Committee said yesterday.