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Gold prices rose slightly after a government report that inflation in the U.S. rose , increasing the appeal of the precious metal as a hedge against inflation.
As it became known , U.S. consumer prices increased slightly last month, but the overall level of inflation remains weak while the Federal Reserve decided to cut its bond purchasing program . Consumer Price Index, which measures how much Americans pay for goods and services , rose a seasonally adjusted 0.3% in December compared with the previous month . Base prices , which exclude volatile food and energy , rose only 0.1%. Compared with a year earlier , overall consumer prices rose by 1.5%, while core prices rose 1.7%. Annual inflation target is 2% Fed . Economists forecast that prices in general will rise by 0.3%, while core prices will rise by 0.1 % in November. Energy prices showed a monthly increase , while gasoline prices rose by 3.1%.
" The need for gold as a safe asset no longer dominates the market : the U.S. economy is showing signs of improvement , the EU is putting in place plans for the economy and fears somewhat subsided crisis " - analysts Heraeus Metals,
It is worth noting that the markets are closely watching the data in an attempt to understand whether the U.S. Federal Reserve have enough evidence of economic recovery to continue to reduce its bond purchases even more in 2014.
Recall that the Fed announced its first QE reduction of $ 10 billion ( to $ 75 billion ) in December , citing an improving economy .
Support investors' appetite for risky assets and yesterday's report from the Federal Reserve , which is known as the "Beige Book" . It was said that the U.S. economy continued to grow at a moderate pace since the end of November until the end of 2013.
Cost February gold futures on the COMEX today rose to $ 1241.90 per ounce.
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