Gold rises 1 percent in New York bourse

Chicago, Aug 29 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as a report showed steady US inflation.

The most active gold contract for December delivery gained $11.4 or 1.02 percent, to settle at $1,134 per ounce, Xinhua reported.

Gold was given support as a report from the US Department of Commerce showed July personal income and outlays rising by 0.1 percent with analysts noting that the year-on-year rate is moving backwards to positive 1.2 percent.

The core PCE price index rose 1.2 percent in the 12 months through July, the smallest rise since March 2011. It increased 1.3 percent in June.

This report gave support to gold as it is the final reading of this measure before the Federal Open Market Committee and will likely impact its decision to delay an increase in interest rates.

An increase in the Fed’s interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest. There has not been an increase in the Fed’s interest rate since June 2006, before the beginning of the American financial crisis.

Silver for December delivery rose 11.2 cents, or 0.78 percent, to close at $14.549 per ounce.

Platinum for October delivery added $15.7, or 1.56 percent, to close at $1,021.70 per ounce.

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