WASHINGTON (dpa-AFX) - Gold futures continued to rise Friday, extending strong weekly gains after tame U.S. inflation data.
The Federal Reserve is widely expected to keep interest rates on hold in the first quarter due to stubbornly low inflation.
In fact, today, New York Fed President William Dudley said to expect a 'boring' 2018 in terms of monetary policy. The Fed has projected three modest rate hikes over the course of the year.
Feb. gold climbed $12.40, or 0.9%, to settle at $1,334.90/oz., the highest since September.
The Commerce Department said retail sales increased by 0.4 percent in December after climbing by an upwardly revised 0.9 percent in November.
Economists had expected retail sales to rise by 0.4 percent compared to the 0.8 percent increase originally reported for the previous month.
Excluding auto sales, retail sales still rose by 0.4 percent in December after jumping by 1.3 percent in November. The increase in ex-auto sales also matched estimates.
A separate report from the Labor Department showed consumer prices rose by less than expected in December, reflecting a sharp pullback in energy prices.
The consumer price index inched up by 0.1 percent in December after climbing by 0.4 in November. Economists had expected prices to rise by 0.2 percent.
Copyright RTT News/dpa-AFX