By 2 Min Read* Last month, the U.S. CPI increased to its highest level in 13 years* Analysts say the CPI data is unlikely to influence the Fed’s stance. (Price changes) Reuters, July 13 – On Tuesday, gold was little changed as a stronger dollar countered support from predictions that the Federal Reserve would not respond with rapid monetary tightening after consumer prices in the United States soared to their highest level in 13 years last month. By 2:11 p.m. EDT, spot gold was unchanged at $1,806.64 per ounce. Gold futures in the United States finished 0.2 percent higher at $1,809.90. Last month, the highly watched US consumer price index (CPI) rose 0.9 percent, compared to a 0.5 percent gain predicted by economists polled by Reuters. However, analysts said the report was unlikely to prompt the Fed to tighten monetary policy quickly, giving gold some support. “For the Fed to move the needle, a string of these high inflation reports will be required. A month’s worth of reading isn’t going to cut it “According to Jim Wyckoff, senior analyst at Kitco Metals, the Fed will consider employment and growth numbers as well. Markets are now watching Fed Chairman Jerome Powell’s appearance before Congress on Wednesday and Thursday for any clues about the central bank’s monetary policy outlook. “With transportation costs rising and oil prices being high, there is a chance that inflation would continue persistently high for longer than the Fed anticipates,” said Fawad Razaqzada, a ThinkMarkets analyst. “If the current inflation path continues, the central bank will inevitably have to intervene, and sooner,” he added. The dollar index rose 0.5 percent against its peers, reducing gold’s appeal to non-dollar holders. Palladium declined 1% to $2,828.93 an ounce, while platinum fell 1.1 percent to $1,105.77 an ounce. The price of silver fell 0.8 percent to $25.97 per ounce. (Bangalore-based reporter Nakul Iyer contributed to this report; Marguerita Choy and Kevin Liffey edited it.)/n
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