Gold prices bouncing off its lows as annual U.S. core CPI rises to its highest level since 1992

(Kitco News) - Gold prices are trying to bounce off their session lows, following a stronger than expected price in U.S. consumer prices.

Thursday, the U.S. Labor Department said its U.S. Consumer Price Index rose 0.6% in May, after a 0.8% rise in April. The data beat consensus forecasts as economists were forecasting a 0.4% rise.

For the year, the report said that headline inflation rose 5.0%. "This was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008."

Meanwhile, core CPI, which strips out food and energy costs, increased 0.7% in May, up from a 0.9% increase in April. Economists were expecting to see an increase of 0.5%.