by Christopher Freeburn | July 9, 2013 4:35 pm
Gold gained in Tuesday trading after the Chinese government reported that its consumer price index for June rose 2.7% compared to last year.
Economists had been expecting a rise of 2.5%, so the CPI surprise fueled a move into gold. (Higher inflation increases gold’s value as a safe haven asset.) Asian gold demand has been strengthening in recent months.
Gold futures for August delivery advanced 0.9% to $1,245.90 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,258.70 and as low as $1,232. Gold bullion closed in London at $1,250, according to BullionVault.
Silver futures for August delivery increased 0.5% to $19.13 per ounce. Tuesday’s high for silver was $19.44 while the low was $19.06.
Gold and silver funds rose in Tuesday trading.
Gold and silver mining ETFs improved during the day.
Gold mining shares were mixed on Tuesday.
Silver mining shares were mostly higher during the day.
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.
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