Gold prices trim gains at settlement after US inflation data

Gold prices erased gains at settlement today, Dec. 12, as investors digested the US Consumer Price Inflation (CPI) data for November, on the heels of the start of the Federal Reserve’s monetary policy meeting.

Bullion for February delivery finished at $1,993.20 per ounce, after surging to $2,012.50 an ounce earlier in the session.

Elsewhere, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, shed 0.20% to 103.88 points at 09:23 pm Makkah time, after touching 103.49 points in early trading.

Data released today showed that consumer prices in the US added 3.10% in November on an annual basis, in line with expectations. Meanwhile, the CPI index ticked 0.10% higher on a monthly basis, against forecasts for its stability.

This came ahead of the Fed’s two-day monetary policy meeting, which begins today and ends tomorrow. Investors are closely monitoring the meeting for more clues about the forthcoming interest rate decision and updated economic outlook from policymakers.