Gold Futures Settle Higher On Dollar’s Weakness, Inflation Concerns

FILE PHOTO: Federal appeals court judges L-R: Raymond Kethledge, Brett Kavanaugh, Amy Coney Barrett, and Thomas Hardiman, being considered by President Donald Trump for the U.S. Supreme Court, are seen in this combination photo from files. REUTERS/File Photos

Gold prices climbed higher on Wednesday, lifting the most active gold futures contracts to their highest settlement since June 11, as the dollar eased a bit from 16-month high and on lingering concerns about rising inflation.

The dollar index dropped to 95.73 before recovering to 95.82, down 0.1% from the previous close.

Gold futures for December ended up by $16.10 or about 0.9% at $1,870.20 an ounce, gaining after two successive days of losses.

Silver futures for December ended higher by $0.223 at $25.167 an ounce, while Copper futures for December settled at $4.2660 per pound, down $0.0855 from the previous close.

Data released by the Commerce Department showed an unexpected decrease in new residential construction in the month of October, although the report also showed a bigger than expected spike in building permits.

The report showed housing starts slid by 0.7% to an annual rate of 1.520 million in October after tumbling by 2.7% to a revised rate of 1.530 million in September.

Economists had expected housing starts to jump by 1.6% to an annual rate of 1.580 million from the 1.555 million originally reported for the previous month.

Meanwhile, the Commerce Department said building permits surged up by 4% to an annual rate of 1.650 million in October after plummeting by 7.8% to a revised rate of 1.586 million in September.

Eurozone inflation increased as estimated in October, final data from Eurostat showed earlier today.

Inflation rose to 4.1% in October from 3.4% in September. The rate came in line with the flash estimate published on October 29. A similar higher rate was last registered in July 2008.

Elsewhere, U.K. consumer inflation surged to 10-year highs, fueling bets of an interest rate hike as early as next month.

Official data showed that U.K. consumer price inflation advanced to 4.2% in October from 3.1% in September. The rate was forecast to climb to 3.9%.

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