Gold futures settled higher on Tuesday as the demand for the safe-haven commodity rose after data showed an acceleration in U.S. consumer price inflation in the month of March.
The drop in bond yield and a weak dollar too supported gold prices.
The dollar index dropped to a low of 91.85 and was last seen at 91.88, down 0.28% from previous close.
Gold futures for June ended up by $14.90 or about 0.9% at $1,747.60 an ounce, recovering well after having dropped to a one-week low in the previous session.
Silver futures for May ended higher by $0.559 or about 2.3% at $25.426 an ounce, while Copper futures for May gained $0.0130 or 0.3% to settle at $4.0340 per pound.
Data released by the Labor Department showed annual inflation rate in the U.S. jumped to 2.6% in March, from 1.7% in February. Economists had expected inflation rate to come in at 2.7%. Core price inflation rose to 1.6% year-on-year in March, following a 1.3% advance in the previous month.
The material has been provided by InstaForex Company – www.instaforex.com