Daily Gold Update

Source: Marketwatch

New York— Gold futures rose slightly Wednesday, reversing earlier losses as the U.S. dollar fell against the euro after U.S. consumer prices data, boosting the precious metal's appeal as an investment alternative. The euro and the Japanese yen rose against the dollar after government data showed U.S. consumer prices fell in the past year at the sharpest pace in 49 years. In a monthly basis, prices rose, but at a pace smaller than analysts had expected. On the Comex division of the New York Mercantile Exchange, August gold rose $3.80, or 0.4%, to end at $936 an ounce. It earlier declined to $928.40. The June contract also ended higher at $935.40.

"The dollar [is] likely to provide much of gold's short-term direction," said James Moore, an analyst at TheBullionDesk.com, in a note. "We expect the current theme of dip buying to continue." U.S. consumer price index fell 1.3% in the past year, the sharpest decline since April 1950, the Labor Department reported Wednesday. On a monthly basis, however, the CPI increased a seasonally adjusted 0.1% in May, rising for the first month in three. Analysts surveyed by MarketWatch expected a monthly gain of 0.3%. Marketwatch