Investing.com – Gold futures were up on Tuesday, re-approaching the daily high as a broadly weaker U.S. dollar and official data showing that Chinese inflation accelerated to a 34-month high in May boosted prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,522.75 a troy ounce during U.S. morning trade, gaining 0.44%.
It earlier rose as much as 0.55% to trade at a daily high of USD1,524.75 a troy ounce.
Earlier in the day, the U.S. Bureau of Labor Statistics said producer prices rose 0.2% in May, taking the annual inflation rate to 7.3%, more than the 6.8% year-on-year forecasted gain.
Core inflation, which excludes food and energy costs, rose broadly in line with expectations in May, increasing by 0.2% after rising by 0.3% in the preceding month.
A separate report showed that retail sales slipped 0.2% in May, after a downwardly revised 0.3% increase in April. Analysts had expected retail sales to decline by 0.7% last month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.31% to trade at 74.65.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Also Tuesday, Chinese government data showed that consumer price inflation rose broadly in line with expectations at an annualized rate of 5.5% in May, the highest since July 2008.
Investors often buy gold and silver as refuges against economic uncertainty and as a hedge against inflation.
Elsewhere, silver for July delivery jumped 1.34% to trade at USD35.19 a troy ounce, as investors sought a cheaper alternative to gold.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,522.75 a troy ounce during U.S. morning trade, gaining 0.44%.
It earlier rose as much as 0.55% to trade at a daily high of USD1,524.75 a troy ounce.
Earlier in the day, the U.S. Bureau of Labor Statistics said producer prices rose 0.2% in May, taking the annual inflation rate to 7.3%, more than the 6.8% year-on-year forecasted gain.
Core inflation, which excludes food and energy costs, rose broadly in line with expectations in May, increasing by 0.2% after rising by 0.3% in the preceding month.
A separate report showed that retail sales slipped 0.2% in May, after a downwardly revised 0.3% increase in April. Analysts had expected retail sales to decline by 0.7% last month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.31% to trade at 74.65.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Also Tuesday, Chinese government data showed that consumer price inflation rose broadly in line with expectations at an annualized rate of 5.5% in May, the highest since July 2008.
Investors often buy gold and silver as refuges against economic uncertainty and as a hedge against inflation.
Elsewhere, silver for July delivery jumped 1.34% to trade at USD35.19 a troy ounce, as investors sought a cheaper alternative to gold.