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Gold Drops Fifth Time in Six Days on Slow U.S. Inflation

Gold declined for the fifth time in six sessions as a government report showed the cost of living in the U.S. rose less than forecast, crimping the appeal of the precious metal as a hedge against inflation.

The consumer-price index rose 0.1 percent in August from July, the Labor Department said today. The median forecast in a Bloomberg survey called for a 0.2 percent gain. Federal Reserve officials meet today and tomorrow, when policy makers are forecast to cut monthly bond buying by $10 billion to $75 billion, according to a Bloomberg survey. Gold has fallen 22 percent this year as bets that the Fed will slow stimulus curbed demand.