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Gold lower after report shows little US inflation

December 17, 2013

NEW YORK (AP) — Gold and silver fell moderately Tuesday following a report that showed U.S. inflation remains tame.

The price for gold fell $14.30, or 1 percent, to $1,230.10 an ounce, while silver fell 26 cents, or 1.3 percent, to $19.84 an ounce.

The Labor Department said consumer prices were flat in November. Over the past year, inflation is up just 1.2 percent.

One reason investors buy gold is to protect against inflation. But since inflation has remained low for last several years, gold’s allure has diminished. The metal is down nearly 27 percent this year.

Other metals were also lower. High-grade copper for March delivery fell a penny, or 0.2 percent, to $3.322 a pound. March palladium fell $15.30, or 2 percent, to $701.05 an ounce and platinum fell $15.50, or 1 percent, to $1,344.60 an ounce.

In energy commodities, crude oil fell 26 cents, or 0.3 percent, to $97.22 a barrel. Natural gas edged higher to $4.29 per 1,000 cubic feet. Wholesale gasoline futures rose slightly to $2.647 a gallon and heating oil fell 3 cents, or 1 percent, to $2.963 a gallon.

Crop prices were mixed. Corn for March delivery rose 3.5 cents, or 1 percent, to $4.268 a bushel and soybeans rose 9 cents, or 0.7 percent, to $13.465 a bushel. March wheat fell 2 cents, or 0.3 percent, to $6.198 a bushel.

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