Investing.com – Gold futures were up for the first time in three days on Tuesday, after official data showed that Chinese inflation accelerated in May, while fears that Greece’s debt crisis was worsening continued to support prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,520.85 a troy ounce during late Asian trade, climbing 0.3%.
It earlier rose to a daily high of USD1,524.75 a troy ounce.
Earlier in the day, 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.
Meanwhile, rating agency Standard & Poor's downgraded Greece's rating to CCC on Monday, making the country it’s lowest-rated in the world. S&P said European policymakers look increasingly likely to impose a restructuring of Greece's debt.
Investors often buy gold and silver as refuges against economic uncertainty and as a hedge against inflation.
Weakness in the dollar also contributed to gold’s strength. 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.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Meanwhile, Richard O’Brien, chief executive of Newmont Mining, the world’s second largest gold producer, expected gold prices to rise to USD1,600 an ounce by the end of the year, on growing demand from Asia's burgeoning middle class and a weaker U.S. dollar.
Speaking at the World Economic Forum on East Asia on Monday, Mr. O’Brien said that, “I'm a firm believer that the gold price has not reached its peak. Five years from now, USD2,000 gold will probably be in reach.”
Elsewhere, silver for July delivery jumped 1.22% to trade at USD35.15 a troy ounce during late Asian trade, while copper for July delivery rose 1% to trade at USD4.072 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,520.85 a troy ounce during late Asian trade, climbing 0.3%.
It earlier rose to a daily high of USD1,524.75 a troy ounce.
Earlier in the day, 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.
Meanwhile, rating agency Standard & Poor's downgraded Greece's rating to CCC on Monday, making the country it’s lowest-rated in the world. S&P said European policymakers look increasingly likely to impose a restructuring of Greece's debt.
Investors often buy gold and silver as refuges against economic uncertainty and as a hedge against inflation.
Weakness in the dollar also contributed to gold’s strength. 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.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Meanwhile, Richard O’Brien, chief executive of Newmont Mining, the world’s second largest gold producer, expected gold prices to rise to USD1,600 an ounce by the end of the year, on growing demand from Asia's burgeoning middle class and a weaker U.S. dollar.
Speaking at the World Economic Forum on East Asia on Monday, Mr. O’Brien said that, “I'm a firm believer that the gold price has not reached its peak. Five years from now, USD2,000 gold will probably be in reach.”
Elsewhere, silver for July delivery jumped 1.22% to trade at USD35.15 a troy ounce during late Asian trade, while copper for July delivery rose 1% to trade at USD4.072 a pound.