Gold Ticks Up After PPI - TheStreet

Gold Ticks Up After PPI

Silver is up 2 cents at $13.09 an ounce.
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Trading in the metals arena was choppy early Tuesday as investors digested the latest set of government economic data.

Prices for benchmark gold futures were up $1.40 at $667.70 an ounce, silver was up 2 cents at $13.09 an ounce, and copper was off a penny at $3.55 a pound.

The Labor Department said producer prices fell 0.2% in June, driven down largely by falling energy costs. Analysts were expecting a slight increase.

But the core rate, which excludes the volatile energy and food components, was up 0.3%, higher than the expected 0.2% rise, thus raising concerns that inflation remains problem for

Federal Reserve

policymakers.

The economic news had the effect of giving gold and silver prices a boost, as some investors purchase precious metals as a long-term hedge against inflation.

Turning to the foreign-exchange market, the greenback was mixed against other major currencies. Euros were changing hands for $1.3782, up from $1.3778 late Monday, and the pound was buying $2.0453, up from $2.0372 a day earlier. The dollar strengthened to 122.28 yen from 121.85 yen previously.

In the mining patch, Deutsche Securities knocked shares of

BHP

(BHP) - Get Report

down to a hold rating from buy.

Among soft commodities, cocoa prices were rallying 1.6% at $2,087 a ton, while coffee prices moved ahead 0.5% at $1.12 a pound. Activity in sugar was subdued, with prices edging slightly higher at about 9.8 cents a pound.

Corn prices were down again, off 2 cents at $3.47 a bushel, and wheat was up 11 cents at $6.12 a bushel.