Metals Stocks: Gold futures rise, but pare gains after CPI inflation report


Gold futures trimmed gains on Wednesday, as investors digested reports on U.S. inflation and prepared for an account of the Federal Reserve’s Sept. 21-22 meeting later in the session.

A September consumer-price index reading due rose 0.4%, versus expectations for 0.3% on the month. Excluding the volatile food and energy components, the CPI climbed 0.2% after edging up 0.1% in August, the smallest gain in six months. In the 12 months through September, the CPI increased 5.4% after advancing 5.3% year-over-year in August and annualized core CPI rose 4.0% after increasing 4.0% in August.

December gold


was trading $1.80, or less than 0.1%, at $1,761.30 an ounce, following a 0.2% gain on Tuesday. At the intraday high, the contract had been at $1,778.50, which would mark the highest settlement since late September if levels had held, FactSet data show.

Meanwhile, silver for December delivery

traded 21 cents, or 1.1%, to $22.72 an ounce, following a 0.7% decline a day ago.

Gold has been mostly registering small losses and trading in a relatively tight range between $1,750 and around $1,770 an ounce. Gold bulls have noted that the precious metal has managed to maintain relative strength despite a stronger U.S. dollar and a steady climb in benchmark Treasury yields, which can compete against bullion for those investors seeking a perceived haven in uncertain times.

“In the commodity complex, gold has displayed some remarkable resilience in recent sessions, absorbing a stronger dollar and the spike in yields without much trouble,” wrote Marios Hadjikyriacos, senior investment analyst at XM, in a daily note.

Meanwhile, the Fed’s minutes of the Semptember meeting are set to be released at 2 p.m. ET, half an hour after Comex traded commodities settle. However, there aren’t likely to be surprises in the report, as the Fed’s No. 2 Richard Clarida signaled earlier this week that the economic recovery from COVID-19 had essentially met the criteria necessary to announce a reduction of monthly asset-purchases of Treasurys and mortgage-backed securities that have been in force since June of 2020.

Such a tapering might help to extend the climb for yields and weigh on bullion.

Key Words: Inflation has shifted to ‘brutally high’ from ‘massive’ in three months, according to Fastenal CEO

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