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Gold prices are rising, as the data of the acceleration of inflation in China increased the appeal of the precious metal as a hedge against inflation.
Consumer price inflation in China in June accelerated more than expected by analysts. The consumer price index in June rose by 2.7% compared with the same period last year, higher than the growth of 2.1% in May and the forecasts of economists, who had expected price growth of 2.5%.
The growth of the dollar against a basket of world currencies slowed, but analysts believe that the upward trend will continue due to the expectations of the Fed's reduction incentive program. Reducing incentives will increase interest rates and the dollar, making gold less attractive to investors outside the United States.
Gold fell by almost 10 percent since Fed Chairman Ben Bernanke announced in June its intention to commence the reduction of the central bank buying up bonds this year. Investors are waiting for the protocol of the June meeting of the Committee on the work of the Federal Open Market, which will be published on Wednesday.
Traders attributed the rise in prices on Tuesday as technical purchases after passing the mark of $ 1,245 per ounce.
Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust fell to its lowest level since February 2009 946.96 tons.
The cost of the August gold futures on COMEX today rose to a high of $ 1258.70 an ounce.
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