Low Inflation Pushes Gold Down to $1,308.70

Gold fell Tuesday on lower inflation numbers, which diminished the metal’s appeal as an inflation hedge. Bloomberg reported that a government report showed the cost of living in the US rose less than forecast.

Spot gold in New York was last quoted at $1,309.80, down $4.10 from yesterday’s close.

Gold futures for December delivery were also down, by 0.7 percent, to $1,308.70, said Bloomberg. However gold is doing better than yesterday, when the yellow metal slipped to $1,302.70, its lowest since Aug. 8.

Gold watchers are anticipating the release of the minutes from the Federal Open Market Committee (FOMC) meeting tomorrow. The minutes are expected to contain a direction on the future of quantitative easing, the $85 billion a month stimulus program that has kept interest rates low in an effort to bolster economic growth. Any pullback of the program would likely be bearish for gold and other precious metals.