Gold lower after report shows little US inflation

AP News
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Posted: Dec 17, 2013 4:16 PM

NEW YORK (AP) — Gold and silver were lower following a report that showed U.S. inflation remains tame.

The price for gold fell $14.30, or 1 percent, to $1,230.10 an ounce, while silver fell 26 cents, or 1.3 percent, to $19.84 an ounce on Tuesday.

The Labor Department said consumer prices were flat in November. Over the past year, inflation is up just 1.2 percent.

One reason investors buy gold is to protect against inflation. But since inflation has remained low for last several years, gold's allure has diminished. The metal is down nearly 27 percent this year.

In other commodities, crude oil fell 26 cents to $97.22 a barrel. Natural gas edged higher to $4.29 per 1,000 cubic feet.

Crop prices were mixed. Corn and soybeans rose while wheat edged lower.