Investing.com – Gold futures moved higher in Asian trade for the third straight day Thursday, as rising U.S. producer prices raised concerns of possible heightened inflationary pressures
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,792.05 a troy ounce during Asian mid-day trade, rising 0.04%, after hitting the day’s low of USD1,785.35.
According to a Bureau of Labor Statistics report Wednesday, the producer price inflation index rose by 0.2% in July, after a 0.4% decline the previous month. Market expectations were for a July increase of 0.1%.
The core PPI, which does not include food and energy, increased by 0.4% in July, suggesting that lower oil prices have not yet been digested throughout the U.S. economy.
Further strengthening demand for safe havens, Tuesday’s meeting between French and German leaders failed to quell concerns that Europe’s sovereign debt crisis is far from over.
Meanwhile, Venezuelan President Hugo Chavez said Wednesday he intends to move forward and repatriate as much as USD11 billion in gold reserves held in the U.S. and Europe in order to nationalize the country’s gold holdings.
According to Chavez, Venezuela will transfer 99 tons of gold from the Bank of England to the country’s central bank. In addition, Venezuela holds gold at JPMorgan Chase & Co., Barclays Plc, Standard Chartered Plc and the Bank of Nova Scotia.
“It’s a healthy decision to bring the gold back to Venezuela,” Chavez said.
Elsewhere on the Comex, silver for September delivery fell 0.40% to trade at USD40.26 a troy ounce, while copper for September delivery eased down fractionally 0.01% to trade at USD4.041 a pound.