Investing.com – Gold futures edged higher on Thursday, after European Central Bank President Jean-Claude Trichet vowed "strong vigilance" against inflation threats, boosting the metal’s appeal as a hedge against accelerating consumer prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,539.25 a troy ounce during U.S. morning trade, edging 0.07% higher.
It earlier rose to a daily high of USD1,541.75 a troy ounce.
ECB President Trichet said earlier that "strong vigilance” on inflation was warranted after the bank kept interest rates on hold at 1.25%.
Speaking after the ECB’s policy setting meeting, Trichet said evidence since the bank’s May meeting confirmed "continued upward pressure on overall inflation mainly owing to commodities and energy prices."
Gold is often seen as an alternative currency and a hedge against inflation.
Meanwhile, concerns over the U.S. economic recovery continued to support prices. The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending June 4 rose by 1K to a seasonally adjusted 427,000 in the week ended June 4. The prior week's figure was revised to 426,000 from an originally reported 422,000.
But gains were limited by a stronger U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38% to trade at 74.60.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Elsewhere, silver for July delivery jumped 1% to trade at USD37.18 a troy ounce during U.S. morning trade, as investors sought a cheaper alternative to gold.
The World Silver Institute said in a report published earlier Thursday that the price of silver was expected to be “well supported in the medium to long term given its wide range of industrial uses.”
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,539.25 a troy ounce during U.S. morning trade, edging 0.07% higher.
It earlier rose to a daily high of USD1,541.75 a troy ounce.
ECB President Trichet said earlier that "strong vigilance” on inflation was warranted after the bank kept interest rates on hold at 1.25%.
Speaking after the ECB’s policy setting meeting, Trichet said evidence since the bank’s May meeting confirmed "continued upward pressure on overall inflation mainly owing to commodities and energy prices."
Gold is often seen as an alternative currency and a hedge against inflation.
Meanwhile, concerns over the U.S. economic recovery continued to support prices. The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending June 4 rose by 1K to a seasonally adjusted 427,000 in the week ended June 4. The prior week's figure was revised to 426,000 from an originally reported 422,000.
But gains were limited by a stronger U.S. dollar. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38% to trade at 74.60.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Elsewhere, silver for July delivery jumped 1% to trade at USD37.18 a troy ounce during U.S. morning trade, as investors sought a cheaper alternative to gold.
The World Silver Institute said in a report published earlier Thursday that the price of silver was expected to be “well supported in the medium to long term given its wide range of industrial uses.”