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Gold & Silver Gain as US Inflation Misses Expectations

January 20, 2016 at 21:39 by Vladimir Vyun

Gold and silver rallied today with the help of US inflation data that trailed forecasts, driving the dollar lower and making commodities priced in the US currency firmer. The Consumer Price Index fell 0.1 percent in December while experts had promised no change. The core components of the index rose 0.1 percent, demonstrating smaller growth compared to the November’s 0.2 percent.

The lackluster data further cooled already waning expectations of additional interest rate hikes from the Federal Reserve. The Fed lifted rates last month for the first Biggest Bounce House time in nearly a decade and promised additional monetary tightening throughout this year. Yet many economists believe that the state of the US economy would not allow the central bank to tighten its policy further, and some even say that the Fed may cut borrowing costs back.

Futures for delivery of gold in February gained 1.13 percent to $1,101.4 per troy ounce as of 21:35 GMT on COMEX today. March contract for silver advanced 0.31 percent to $14.17 per ounce.

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