Gold futures settled sharply higher on Wednesday as the dollar lost some ground and Treasury yields dropped a bit after data showed consumer prices in the U.S. saw a sharper than expected acceleration in September.
The dollar index drifted down to 94.05, losing more than 0.5%. The benchmark U.S. 10-year Treasury yields eased from their June highs.
Gold futures for December ended up by $35.40 or about 2% at $1,794.70 an ounce, the highest settlement in almost a month.
Silver futures for December closed higher by $0.656 at $23.170 an ounce, while Copper futures for December settled at $4.5160 per pound, up $0.1905 from the previous close.
Data from the Labor Department showed the consumer price index climbed by 0.4% in September after rising by 0.3% in August. Economists had been expecting another 0.3% increase.
Excluding higher prices for food and energy, core consumer prices edged up by 0.2% in September after inching up by 0.1% in August. The uptick in core prices matched economist estimates.
The report also showed the annual rate of growth in consumer prices accelerated to 5.4% in September from 5.3% in August, while the annual rate of growth in core prices was unchanged at 4%.