Gold rose modestly in Tuesday trading on the heels of a report from the Labor Department that showed slightly increasing levels of inflation in the U.S. economy in June, as well as a decline in the U.S. dollar.

While data released by the Labor Department on Tuesday showed the largest gain in the Consumer Price Index since February, fuel costs drove most of the increase. Overall, prices remain just 1.8% higher than during the same time last year. That suggests the economy continues to grow slowly and eases fears that the Fed’s ongoing stimulus efforts could ignite hyperinflation.

Gold futures for August delivery climbed 0.5% to $1,290.40 per ounce Tuesday, according to CME Group. Gold traded as high as $1,294.70 and as low as $1,275.60. Gold bullion closed in London at $1,294, according to BullionVault.

Silver futures for August delivery also rose 0.5% to $19.93 per ounce. Tuesday’s high for silver was $19.98, while the low was $19.70.

Gold and silver funds moved higher in Tuesday trading.

• The SPDR Gold Trust (GLD) rose 0.6%.
• The iShares Gold Trust (IAU) also added 0.6%.
• The iShares Silver Trust (SLV) climbed 0.4%.

Gold and silver mining ETFs advanced during the day.

• The Market Vectors Gold Miners ETF (GDX) surged 5.6%.
• The Market Vectors Junior Gold Miners ETF (GDXJ) gained 3.9%.
• The Global X Silver Miners ETF (SIL) improved 4.3%.

Gold mining shares improved sharply on Tuesday.

• Agnico-Eagle Mines (AEM) increased 2.8%.
• Barrick Gold (ABX) surged 6.5%.
• Eldorado Gold (EGO) jumped 7%.
• Goldcorp (GG) added 5.7%.
• Kinross Gold (KGC) gained 6.6%.
• Newmont Mining (NEM) moved up 3.2%.
• NovaGold Resources (NG) climbed 4.6%.
• Yamana Gold (AUY) soared 7.2%.

Silver mining shares gained during the day.

• Coeur d’Alene Mines (CDE) jumped 6.9%.
• Hecla Mining (HL) advanced 5.2%.
• Pan American Silver (PAAS) climbed 4.1%.
• Silver Wheaton (SLW) increased 4.5%.
• Silver Standard Resources (SSRI) added 4.9%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.