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Gold edges lower after US consumer price data

Published 06/15/2011, 08:40 AM
Updated 06/15/2011, 08:44 AM

LONDON, June 15 (Reuters) - The gold price modestly extended losses on Wednesday after U.S. data showed a surprisingly steep pick-up in consumer prices, which gave the dollar enough of a lift to offset any potential boost to bulllion from rising investor concern over inflation.

By 1237 GMT, spot gold was down 0.52 percent on the day at $1,515.26 an ounce, having traded above $1,516.00 just prior to the release of the Commerce Department's consumer price index data for May, which showed core inflation posted its largest rise in three years.

A stronger rise in consumer prices could prompt the Federal Reserve to move sooner rather than later to adjust monetary policy to curb inflation, an expectation which pushed up the dollar by more than 1 percent against a basket of major currencies. <.DXY> (Reporting by Amanda Cooper)

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