US August Inflation Rates and Their Impact on the Gold Market

Serdar HocamAuthor & Editor

Following the announcement of America's consumer inflation for August, gold prices experienced an upward movement.

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Following the consumer price index data for August announced by the US Bureau of Labor Statistics, ounce and gram gold gained value.

August Inflation Data

The US Bureau of Labor Statistics shared the consumer price index data for August with the public. Accordingly, the consumer price index increased by 0.4 percent on a monthly basis in August.

Annual Inflation Level

The consumer price index showed an annual increase of 3.4 percent in August, maintaining the 3.4 percent level recorded in July.

Changes in Gold Prices

Immediately after the announced inflation data, upward movements were observed in the gold market. Gram gold and ounce gold gained value and rose.

Gasoline and Energy Items

In August, the gasoline index increased by 3.9 percent, accounting for more than a third of the total monthly increase. The energy index also rose by 2.1 percent on a monthly basis.

Core CPI Developments

Calculated by excluding food and energy prices, the core consumer price index increased by 0.3 percent on a monthly basis in August and rose by 2.4 percent over the 12-month period.