MTECHTIPS:-Gold trends weaker in Asia as investors mull Fed outlook on rates

MTECHTIPS:-Gold trends weaker in Asia as investors mull Fed outlook on rates

Gold prices dipped in Asia on Thursday as investors mulled overnight weak data from the U.S. and the prospects for Federal Reserve rate hikes this year. On the Comex division of the New York Mercantile Exchange, gold for February delivery fell 0.56% to $1,100.00 a troy ounce. Silver for March delivery eased 0.04% to $14.155 a troy ounce, while copper for March delivery was flat at $1.983 a pound. Overnight, gold surged by more than 1.5% on Wednesday rising above $1,100 an ounce, as soft inflation data in the U.S. increased the possibility that the Federal Reserve could delay its next rate beyond the first quarter. On Wednesday morning, the U.S. Department of Labor said that its Consumer Price Index (CPI) for all items declined 0.1% in December on a seasonally adjusted basis, slightly below forecasts for a flat reading. The CPI for December also rose by 0.7% on a yearly basis, before seasonal adjustments, extending 0.5% gains from a month earlier. Housing and medical care prices inched up by 0.1% on the month, posting annual increases of 2.1% and 2.6% respectively. As expected, energy prices dragged down the overall index, falling more than 2% in December to end the year 12.6% lower.

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