Gold gains for second session on weak dollar, recovering oil
Gold futures on the COMEX Division of the New York Mercantile Exchange gained a little on Wednesday as dollar declined after new Consumer Price Index (CPI) data was released. Silver ended higher, but platinum fell.
Gold price for August delivery rose 3.80 U.S. dollars, or 0.4 percent, finishing at 936 dollars an ounce.
The Labor Department reported the U.S. consumer price index fell 1.3 percent compared with the same period last year, marking the sharpest decline since April 1950. In a monthly base the CPI increased a seasonally adjusted 0.1 percent in May, rising for the first month in three but less than economists’ anticipation of 0.3percent.
Analysts indicated the CPI data provided fresh evidence that inflation seems far away from the current economic situation, reducing gold’s appeal as a hedge against inflation and forcing gold to dip into negative area early in the session.
However, a weak dollar and recovering crude oil helped the precious metal close higher finally.
July silver finished at 14.28 dollars per ounce, up 15 cents. July platinum lost 15.70 dollars to 1,205.20 dollars an ounce.