CHICAGO -- Gold futures on the COMEX division of the New York
Mercantile Exchange climbed to the highest in nearly two weeks on Friday, as
data on retail sales and inflation stoked concerns that the pace of economic
growth may not merit lifting US interest rates again in 2017.
The most active gold contract for August delivery rose USD10.2, or 0.84
percent, to settle at USD1,227.50 per oz.
The surge in gold prices came after a Friday report on consumer prices
showed that inflation in June came in flat, a sign that consumer prices had
trouble sustaining its upward momentum. A weaker-than-expected reading for
June's retail sales, which fell 0.2 percent, also signaled weakness.
Market analysts said the lack of spending from US shoppers made it
difficult to envision inflation approaching the Fed's 2 percent target.
Fed chair Janet Yellen on Wednesday had reaffirmed her outlook for
gradual interest rate increases, giving gold a modest boost.
Rising real interest rates lower the attractiveness of holding gold
because the metal provides no yield, and entices investors to rotate into
riskier assets like stocks.
As for other precious metals, silver for September delivery added 24.2
cents, or 1.54 percent, to close at USD15.933 per oz. Platinum for October
delivery rose USD16.40, or 1.81 percent, to close at USD923.5 per oz. (Xinhua)
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