Inflation Higher Than Estimated, Gold Rises 9.20 Dollars

Gold (Photo: ANTARA)

JAKARTA - Gold prices rose at the end of trading Friday (Saturday morning WIB), extending gains for a fourth consecutive session as inflationary data higher than expected prompted some safe haven requests for yellow metal.

The most active gold contract for February delivery in the Comex New York Exchange division, rose 9.20 dollars, or 0.51 percent, to close at 1,810.70 dollars an ounce, after trading to a session high of 1,819.00 US dollars and a session low of 1,800.10 US dollars.

Quoted from ANTARA, Gold futures rose 3.50 US dollars or 0.19 percent to 1,801.50 US dollars on Thursday, December 8, after surging 15.6 US dollars or 0.88 percent to 1,798.00 US dollars on Wednesday, December 7, and boosted 1.10 US dollars or 0.06 percent to 1,782.40 US dollars on Tuesday, December 6.

The US Department of Labor reported on Friday, December 9, that the US producer's price index increased 0.3 percent month-on-month in November, higher than the 0.2 percent increase estimated by economists.

The growth in US wholesale prices is higher than expected to dampen expectations that inflation could lead to lower, increasing investor safe haven demand for gold.

The US Commerce Department reported on Friday, December 9, that supplies of US wholesalers increased 0.5 percent in October in a month, slightly less than the 0.6 percent increase recorded in September.

The initial reading of the University of Michigan's consumer sentiment index showed an unexpected jump to 59.1 in December, up from 56.8 in November and beating market forecasts for reading 56.9.

Investors expect a 50-base-point interest rate hike at a Federal Reserve monetary policy meeting next week.

Gold futures rose nearly 0.1 percent for the week.

Another precious metal, silver for March delivery rose 47.1 cents, or 2.03 percent, to close at 23,717 dollars an ounce. Platinum for January delivery rose 21.60 dollars, or 2.13 percent, to close at 1,036.20 dollars an ounce.