FX.co ★ Gold Futures Settle Higher As Dollar Slides After Soft Inflation Data

Gold prices climbed higher on Tuesday as the dollar plunged sharply after data showing softer-than-expected consumer price inflation in the U.S. eased concerns about interest rates.

The dollar index dropped to 104.17, losing about 1.4%.

Gold futures for December ended higher by $16.30 at $1,966.50 an ounce.

Silver futures for December ended up $0.774 at $23.132 an ounce, while Copper futures for December settled at $3.6835 per pound, gaining $0.0175.

The Labor Department said U.S. consumer price index was unchanged in October after climbing by 0.4% in September. Economists had expected consumer prices to inch up by 0.1%. Core consumer prices edged up by 0.2% in October after rising by 0.3% in September. Core prices were expected to rise by another 0.3%.

The report also said the annual rate of consumer price growth slowed to 3.2% in October from 3.7% in September. Economists had expected the pace of growth to decelerate to 3.3%.