News of rising inflation in the U.S. and cautionary comments from Federal Reserve Vice Chairman Donald Kohn had gold futures surging Wednesday.
Contracts for April delivery of gold closed $23 higher at $684 an ounce on the Comex divison of the New York Mercantile Exchange. The bullion exhange-traded funds that hold the metal, streetTracks Gold Shares (GLD) and iShares Comex Gold Trust (IAU), were litfting also, up 3% recently.
The Labor Department says its consumer price index rose 0.2% during January, twice the consensus forecast of a 0.1% increase but down from 0.4% in December. The core rate, which excludes the volatile food and energy components, advanced 0.3% vs. expectations of a 0.2% rise, and up from 0.1% previously.
"The upside surprise in the headline and core number will keep the market a bit on edge until we get to see the