Gold prices settled higher on Wednesday, marking a modest reversal in selling action that had driven the metal down for seven sessions in the past eight.
December gold GCZ8, -0.03% settled at $1,210.10 an ounce, up $8.70, or 0.7%. Tuesday's finish at $1,201.40 was the lowest for a most-active contract since Oct. 10, according to FactSet data.
December silver SIZ8, +0.14% tacked on 10.3 cents, or 0.7%, to $14.08 an ounce. Its settlement Tuesday at $13.977 was the lowest for a most-active contract since January 2016.
Data released Wednesday showed that the U.S. consumer-price index climbed 0.3% in October. That was the biggest advance since January and matched the forecast of economists polled by MarketWatch.
Following the data, the ICE U.S. Dollar Index DXY, -0.02% a measure of the U.S. currency against six major rivals, slipped back from a session high of 97.406. It traded down 0.1% at 97.182 as gold futures settled.
Overall, however, a strong dollar has been driving gold lower. The dollar index's push above 97.57 earlier this week was its highest level since June of 2017, according to FactSet data. The gauge has climbed about 5.5% year to date, partly boosted by expectations for further tightening by the Federal Reserve. The Fed is expected to raise rates next month and thrice in 2019. Higher interest rates can boost the dollar and dull demand for dollar-denominated commodities.
Gold's value as a safety asset may come back into fashion as risk-on investing becomes chaotic in 2019. At least that's the featured theme in Wednesday's MarketWatch Need to Know column.
"Being long gold has been a tough investment since 2012, and so often, when we see the yellow metal gaining traction, the [U.S. dollar] regains its mojo, and we see the inevitable reversal," writes Chris Weston, head of research at Pepperstone Group, in the call of the day featured in the column. "However, as we look into our crystal ball and gaze into 2019, emerging warning signs can be seen that suggest 2019 could be the year where gold bulls finally get their day in the sun."
In other metals trade, January platinum PLF9, +0.55% fell 0.9% at $833.80 an ounce, while December palladium PAZ8, +0.13% rose 1.7% to $1,110.20 an ounce. December copper HGZ8, +0.17% meanwhile, added 0.9% to $2.71 a pound.
Among exchange-traded funds, the SPDR Gold Shares GLD, +0.83% edged up by 0.6%, paring its week-to-date loss to less than 0.1%.
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