by Yvonne Yue Li
Yahoo! Finance
(Bloomberg) — Gold eked out small gains as the dollar extended losses after the latest US data showed a key inflation gauge picked up last month, reinforcing expectations that the Federal Reserve will adopt a measured approach to lowering interest rates.
The Fed’s preferred measure of underlying inflation — the so-called core personal consumption expenditures price index — increased 2.8% from October last year and 0.3% from a month earlier, according to Bureau of Economic Analysis figures published Wednesday. The price index strips out volatile food and energy items.
The print came after policymakers indicated in the minutes of their November meeting their support for a careful approach to rate cuts. Lower rates typically benefit bullion as it pays no interest.