Gold Down on US Higher Inflation

Gold prices declined to the lowest levels in more than nine months on Wednesday, July 13th, as US inflation data showed an additional increase.

Spot gold prices decreased 0.7% to trade at $1713.80 per ounce by 13:27 GMT, after hitting its lowest level since late September at $ 1722.30 earlier in the session.

The consumer price index, a broad measure of everyday goods and services, soared 9.1% from a year ago, above the 8.8% Dow Jones estimate. That marked another month of the fastest pace for inflation going back to December 1981.

Excluding volatile food and energy prices, so-called core CPI increased 5.9%, compared with the 5.7% estimate.

Although gold is considered as a hedge against inflation, high interest rates keep investors away from the non-yielding yellow metal.

The dollar remained near its highest levels in 20 years, keeping gold priced in the US currency less attractive to buyers holding other currencies.