Gold sees price gains following tame U.S. inflation data

(Kitco News) - Gold and silver prices are higher and trading near their daily highs in early U.S. trading Tuesday, following a U.S. inflation report that came in cooler than expected and in turn sparked a sell off in the U.S. dollar index. Gold prices had slipped to a three-week low overnight. October gold futures were last up $4.40 at $1,796.70. December Comex silver was last up $0.044 at $23.845 an ounce.

The U.S. consumer price index report for August came in a up 0.3% from July versus the forecast up 0.4% and after a rise of 0.5% in July. Year-on-year the CPI was up 5.3% compared to forecasts of up 5.4%. The report falls into the camp of the U.S. monetary policy doves who want the Federal Reserve to hold off on tightening monetary policy, and that’s what put some downside price pressure on the U.S. dollar index.

Global stock markets were mixed in quieter overnight trading. The U.S. stock indexes are pointed to modestly higher openings when the New York day session begins.