Gold prices lost some of their shine on Friday after the release of better-than-expected U.S. inflation data.
Figures released Friday by the U.S. Labor Department showed consumer prices increased more than expected in August as rising rents and health-care costs counteracted a drop in gasoline prices, pointing to a steady buildup of inflation that could allow the Federal Reserve room to raise interest rates this year.
The department said on Friday its Consumer Price Index rose 0.2% last month after being flat in July. In the 12 months through August, the CPI grew 1.1% after advancing 0.8% in July.
Spot gold was 0.4% lower at $1,309.09 U.S. an ounce around noon ET Friday, still above a two-week low of $1,309.25 plumbed on Thursday. U.S. gold futures for December delivery were down $5.80 at $1,313.80 U.S.
Gold has rallied 24% this year on expectations that the Fed would hold off on further interest rate rises.
