Gold’s longest run in a year ends as US inflation picks up

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London | Published: March 25, 2015 6:38:32 PM

Gold's longest run of gains in a year ended today as a pick up in US inflation increased the prospects for higher interest rates.

gold, gold price, gold rate, gold run, gold longest run, us inflation, gold us inflation, gold news, gold inflation, silver, silver price, gold vs silverHigher borrowing costs cut gold?s allure because the metal generally offers returns only through price gains. (Reuters)

Gold’s longest run of gains in a year ended today as a pick up in US inflation increased the prospects for higher interest rates.

Gold lost 0.1 per cent to USD 1,192.03 an ounce. It climbed to a two-week high of USD 1,195.15 yesterday. Silver, however, was little changed at USD 16.98 an ounce.

The consumer-price index rose 0.2 per cent in February, the first gain in four months, a Labour Department report showed in Washington.

Higher borrowing costs cut gold’s allure because the metal generally offers returns only through price gains.

Meanwhile, gold gained 3.8 per cent in the previous five days in the longest run since February 2014, after Fed Chair Janet Yellen signaled last week that the central bank is in no hurry to raise rates, even as it dropped a pledge to be patient on tightening.

Bloomberg

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