Tsafi

[popeyej]

U.S. core consumer prices climbed 0.4 percent, more than expected, in February as energy costs bounced back from a January decline and food prices rose at their steepest rate in nearly two years.

"The only thing you can conclude from today's report is that we're still in this situation that we've been in the last eight months: watchful of the trend in inflation. The bottom line is inflation is not going down," said Kathleen Camilli, president of Camilli Economics Llc in New York.

U.S. crude oil futures strengthened, but traders remained cautious after prices slumped to a four-week low overnight. April crude futures were holding below $58 in New York trade.

A rise in oil prices tends to draw gold investors seeking an inflation hedge into the precious metal market.
Reuters Pictures
Photo

Editors Choice: Best pictures
from the last 24 hours.
View Slideshow

"I'm still bullish," said one gold trader.

"With a close today above $654.50 in April, I think we'll see the contract highs tested within 2 weeks. If that happens, I expect to see much higher levels," he added.