* Gold up more than 0.5% this week

* U.S. CPI rises 0.6% in May

* Palladium heads for a weekly fall (Recasts, adds comments, updates prices)

June 11 (Reuters) – Gold prices edged above $1,900 per ounce level on Friday, supported by a pullback in the dollar and lower bond yields, after data showing a rise in U.S. inflation was viewed inadequate to alter the Federal Reserve’s easy monetary policy.

Spot gold was up 0.1% at $1,900.51 per ounce, as of 0313 GMT. Prices have risen more than 0.5% this week.

U.S. gold futures rose 0.3% to $1,902.90 per ounce.

Data showed U.S. consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years, while weekly jobless claims dropped to their lowest level in nearly 15 months last week.

“The rise in U.S. inflation failed to spark a tapering sell-off. That saw bond yields edge lower helping gold to bounce back,” said Jeffrey Halley, senior market analyst at OANDA.


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