Daily Gold Update

Source:Marketwatch.com

New York— Gold futures reversed earlier losses Friday, rising slightly to extend their weekly gains as newly released data showed a price gauge excluding food and energy prices rose in the past year, stirring inflation worries. The core consumer prices index rose 1.9% over the past 12 months, the Labor Department reported. Investors tend to buy gold as a hedge against inflation. Including energy and food, however, the CPI fell 0.7% in the same period. Gold for June delivery rose $2.90, or 0.3%, to $931.30 an ounce on the Comex division of the New York Mercantile Exchange. Trading remained in a small range Friday, with prices moving between gains and losses during the session.

"The core inflation number helped stabilize gold and helped gold up $930" said George Gero, a precious-metals trader for RBC Capital Markets. "But I am not looking for anything usual today." The June gold contract ended the week up 1.8%. See full story.