Metals Stocks: Gold aims to halt 4th-straight drop even after hotter-than-expected inflation reading

Gold prices traded mixed Thursday, though still risk a fourth-straight drop while trading near September lows, after a snapshot of consumer-level inflation came in hotter than expected.

That report—which showed the consumer price index rose 0.4% in August for the biggest rise since January—could hold implications for the likelihood of further interest-rate tightening this year, a likely negative development for gold. Rent and gas prices drove prices higher last month, while the less-volatile core index rose a cooler 0.2%.

The dollar index remained lower after the report, likely helping gold, which is primarily priced in the U.S. unit.

Gold futures extended their modest decline initially after the report, but have improved.

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