Gold prices gained in Asia after North Korea fired a missile over the northern Japan island of Hokkaido and into the Pacific Ocean, drawing a new line in the sand for the U.S. and allies to respond. Overnight, gold prices rose for the first time in three days after the dollar came under pressure but gains were capped as data showed the pace of U.S. consumer prices hit a 7-month high in August raising expectations for a Federal Reserve rate hike later this year. Gold prices halted a three-day losing streak as the dollar eased despite inflation and jobs data topping expectations pointing to an improving U.S. economy which could influence the Federal Reserve to stick to its plan to hike rates at least once more this year. The Labor Department said on Thursday its Consumer Price index rose 0.4% last month after edging up 0.1% in July. The uptick in consumer prices in August was the largest monthly gain in seven months and lifted the year-on-year increase in the CPI to 1.9% from 1.7% in July. In a separate report the U.S. Department of Labor reported that initial jobless claims decreased by 14,000 to 284,000 in the week ended Sept. 10, confounding forecasts of a 2,000 increase.
Source: Investing
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