Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Tuesday for the first session in three, bouncing back from their lowest level in more than three weeks as the dollar weakened following U.S. economic data, increasing gold's investment appeal. The dollar fell against the euro and the Japanese yen after the Labor Department reported the producer price index, tracking inflation at the wholesale level, rose less in May than had been expected. Meanwhile, the Commerce Department said May housing starts bounced back from a post-World War II low set in April.

On the Comex division of the New York Mercantile Exchange, August gold gained $4.70, or 0.5%, to end at $932.20 an ounce. The June contract also gained $4.0 to $931.60. The front-month contract ended Monday's trading at the lowest level since May 19. "The inverse relationship between gold and the U.S. dollar is still in place," said analysts led by Barbara Lambrecht at Commerzbank. See full story.