Gold price rallies to 5-mo. high on hot U.S. inflation report

Gold Hits 9-mo. High on Hot Inflation

Gold last traded at $1,863 an ounce. Silver at $24.25 an ounce.

NEWS SUMMARY: Precious metal prices reached 9-month highs Thursday on safe-haven buying despite a firmer dollar. U.S. stocks traded mixed after hot inflation data and surging bond yields sparked a sell-off in technology stocks on Wednesday.

KITCO--"Gold prices are solidly higher and hit a nearly five-month high in early U.S. dealings Wednesday, following a hot U.S. inflation reading. There were also hot inflation numbers coming out of China Wednesday. December gold was last up $16.30 at $1,848.00 and December Comex silver was last up $0.282 at $24.58 an ounce.

The just-released U.S. consumer price index for October came in at up 0.9% and up 6.2%, year-on-year. The CPI was expected to come in at up 0.6% from September and up 5.9%, year-on-year. The October numbers are the highest U.S. CPI readings in over 30 years. Tuesday's U.S. producer price index showed a rise of 8.6%, year-on-year.

Meantime, weekly U.S. jobless claims fell 4,000, to 267,000 in the latest reporting week. Those numbers were close to trade expectations. The weekly jobless claims report was released a day early due to the U.S. Veterans Day holiday on Thursday."