Gold surges to high­est since early June on tame US in­fla­tion

Muscat Daily - - BUSINESS -

New York, US - Gold fu­tures ex­tended gains to a nine-week high af­ter a re­port showed US con­sumer prices rose less than ex­pected, weak­en­ing the case for the Fed­eral Re­serve to raise in­ter­est rates.

Bul­lion fu­tures for De­cem­ber de­liv­ery rose 0.3 per cent to set­tle at US$1,294 an ounce at 1:48 pm on the Comex in New York on Fri­day. That’s the high­est close for a most ac­tive con­tract since June 6. It ear­lier added as much as 0.6 per cent to $1,298.10. The metal climbed 2.3 per cent this week, post­ing the fourth weekly gain in five.

The US con­sumer-price in­dex rose 0.1 per cent in July. A more sus­tained ebb in price pres­sures could make it tougher for the cen­tral bank to stay on course for one more rate in­crease this year.

Low rates boost the ap­peal of gold, which doesn’t pay in­ter­est.

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