Gold prices hit a four-week high and silver prices a five-week high early on Wednesday. October gold futures were last down $2.60 at $1,798.70. September Comex silver futures were last up $0.038 at $20.52 an ounce, writes Jim Wyckoff for Kitco News.
The US consumer price index report for July came in at unchanged from June and up 8.5%, year-on-year. The report was expected to be up 8.7%, year-on-year, after a rise of 9.1% in the June report.
Gold prices initially rallied to a four-week high on the news, as the US dollar index dropped sharply and US Treasury yields declined. However, bond yields then ticked back up.
Global stock markets were mostly down at midweek but overnight news, China said it has stopped its military exercise around Taiwan, adding that it was preparing for war.
On the economic front, China said its consumer price inflation in July was up 2.7%, year-on-year, which is the highest rate in two years.