Gold prices rose again after a series of losses, and the precious metal benefited from the falling dollar.
Gold prices recovered Tuesday from their lowest level in more than a week after data showing a sharp increase in inflation in the United States strengthened the appeal of the precious metal as a hedge against inflation and pushed the dollar to decline.
Spot gold rose 0.77% to $ 1745.70 an ounce in late trading session, after it had fallen earlier to $ 1722.67, its lowest level since the fifth of April.
US futures rose 0.9% to settle at $ 1747.60 an ounce.
“We needed to see some inflation to make gold move and we watched this morning,” said Bob Habercorn, chief market analyst at RJO Futures, referring to data that showed that consumer prices in the United States recorded the largest increase in more than 8 and a half years in March.
The dollar fell to its lowest level in 3 weeks after inflation data, which makes gold cheaper for holders of other currencies. The 10-year US Treasury yields also decreased.
Among other precious metals, silver rose 2.0% to $ 25.35 an ounce, while palladium rose 0.54% to $ 2,690 an ounce after hitting its highest level since March 18 at $ 2,710.
Platinum fell 1.1% to $ 1156.80 an ounce.