Friday, May 13, 2011

Gold Prices today may 13 2011, Slow US Inflation Dents Gold, Silver Eyes Dollar

Gold Prices today may 13 2011, Slow US Inflation Dents Gold, Silver Eyes Dollar : NEW YORK (Dow Jones)--A weaker dollar helped silver futures eke out mild gains while gold prices slipped on neutral U.S. inflation data Friday.

The most actively traded gold contract, for June delivery, was recently down $2.60, or 0.2%, at $1,504.20 per troy ounce on the Comex division of the New York Mercantile Exchange. May-delivery gold was up $4.30, or 0.3%, at $1,510.90 per troy ounce.

The most actively traded silver contract, for July delivery, was up 31.8 cents, or 0.9%, at $35.115 per troy ounce. May-delivery silver was up 33.2 cents, or 1%, at $35.125 per troy ounce.

U.S. consumer prices rose at a seasonally adjusted 0.4% in April, following a 0.5% rise in March, again driven up by higher gasoline and grocery prices.

Core inflation, which is considered a more reliable indicator as it excludes volatile food and energy prices, rose by 0.2% in April, after a 0.1% increase in March. The results were exactly in line with what economics had forecast in a Dow Jones Newswires survey.

The slow increase in inflation put a dent in gold prices, as many investors had purchased gold to guard their wealth against inflationary pressures and some opted to sell holdings when these concerns failed to materialize.

A slightly weaker dollar also supported precious metals prices. The dollar slipped against a trade weighted basket of currencies, with the ICE Dollar Index falling to 75.153 recently, down from 75.185 late Thursday in New York.

Dollar-denominated gold and silver futures appear cheaper to buyers using foreign currencies when the dollar weakens.
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