Gold Rallies As December Inflation Prompts Unease

2025-01-17 02:40:00 ET

Summary

• Gold futures soared on the back of yesterday’s December CPI data, climbing by $29.50 to settle at $2,722.60 for the most active February contract.
• The U.S. Bureau of Labor Statistics revealed that overall inflation rose 0.4% in December — exceeding November’s 0.3% pace and slightly above economists’ consensus of 0.3%.
• Energy costs once again took the spotlight, climbing 2.6% in December and accounting for over 40% of the month’s overall inflation.
• The incoming Trump administration’s proposed economic measures — ranging from fresh tariffs to additional tax cuts — could stoke further inflation, especially if combined with continued dollar weakness.

Gold futures soared on the back of yesterday's December Consumer Price Index (CPI) data, climbing by $29.50 (1.10%) to settle at $2,722.60 for the most active February contract. The U.S. Bureau of Labor Statistics revealed that overall inflation rose 0.4% in December - exceeding November's 0.3% pace and slightly above economists' consensus of 0.3%. On an annual basis, the rate stood at 2.9% before seasonal adjustments, with core CPI (excluding food and energy) ticking by 3.2% - just shy of expectations for 3.3%. This modestly higher-than-projected headline figure, coupled with marginally softer core data and recent optimistic jobs data , has prompted a wave of speculation about the Federal Reserve's potential policy path....

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