NEW YORK (AFX) - Gold futures rose Wednesday as the dollar weakened after inflation data was released that apparently reinforced the Federal Reserve's recent decision to pause in monetary tightening.
December gold settled $6.10 higher to $639 a troy ounce on the New York Mercantile Exchange, while September silver added 20 cents to $12.285.
'The market seems to be reacting well to the slightly weaker U.S. dollar,' said Dave Meger, senior metals analyst with Alaron Trading. 'We have some news as of late that would appear to back the Fed's attitude of a slightly slowing economy that is going to keep inflation relatively in check and reduce the need for further rate hikes. That has put a little pressure on the dollar.'
The Labor Department reported that in July, its consumer price index increased by 0.4 percent, as economists expected.
However, the core CPI reading -- excluding food and energy -- was up 0.2 percent, less than anticipated. That's the first time in five months that the core CPI number, which is closely watched by the Federal Reserve, has not come in at 0.3 percent.
October platinum settled up $9.60 at $1,251 an ounce. September palladium settled up $11.70 to $336.40 an ounce.
The benchmark September copper contract settled 5.75 cents lower at $3.47 per pound on news that union workers softened their demands as talks resumed with company officials at Chilean copper mine Escondida on the tenth day of a strike.
September light, sweet crude oil closed down $1.15 at $71.90 a barrel, the front-month contract's first close below $72 since June 27.
September gasoline fell 1.41 cents to $1.975 a gallon. That's its lowest since May 17. September heating oil fell 0.85 cent to $2.015 a gallon.
September natural gas settled down 9.5 cents at $6.766 a million British thermal units.
On the New York Board of Trade, September Arabica coffee ended 2.10 cents higher at $1.0285 a pound.
The front-month September cocoa contract finished up $17 at $1,541 per metric ton.
Futures on raw sugar in foreign ports for October settled down 0.14 cent at 12.65 cents a pound.
On the Chicago Board of Trade, September corn slipped 0.50 cent to $2.2150 per bushel. September soybeans ended 4.25 cents lower at $5.52.25 per bushel. September wheat futures ended 5.25 cents lower at $3.7150 per bushel.
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