WASHINGTON (dpa-AFX) - Gold futures jumped to nearly 3-week highs Thursday as traders weighed the first of two reports on U.S. inflation.
Prices at the wholesale level climbed 0.4 percent in September, as expected. However, the producer price (PPI) uptick was largely a result of higher energy costs in the wake of Hurricane Harvey.
These effects are expected to be temporary, putting the Federal Reserve in a quandry as they want to see sustained inflation before raising interest rates in December.
Consumer price inflation numbers are due out tomorrow. The CPI report is expected to mirror today's PPI.
Dec. gold gained $7.60, or 0.6%, to settle at $1,296.50/oz, the highest since September 26.
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