Daily Gold Update

Source: Marketwatch

New York— Gold prices on Tuesday edged slightly higher, adding to the prior day's rise above $920 an ounce, as stronger oil prices and a weaker dollar heightened demand for the metal as an alternative investment. August gold futures added to an earlier rise after data showed the U.S. Producer Price Index rose to 1.8% in June. The contract rose 30 cents to $922.80 an ounce on the Comex division of the New York Mercantile Exchange, after ending above $920 an ounce on Monday for the first session since July 7.

Lessened worries about deflation after retail sales data also bolstered gold, with the metal recently hit by thoughts of a downward pressure on prices due to the global economic slowdown. Rebounding after a decline of 1.6% last week, gold on Monday rose $10, or 1.1%, to end at $922.50 an ounce, its first close above $920 since the first week of July. See full story.