Gold Prices Near a 5-Month Peak, Supported by The Fall of The Dollar And Inflation Fears

Gold prices rose today, Tuesday, June 1 to their highest levels in nearly five months, supported by the decline of the dollar and growing inflationary pressures, while investors awaited more US data for indications of the extent of the global economic recovery.

Spot gold rose 0.1% to 1910.24 dollars an ounce, US gold futures rose 0.4% to $1,913.

The dollar index fell 0.2% against other major currencies, making gold less expensive for holders of other currencies. The US currency recorded its second consecutive monthly loss.

Data last week showed US consumer prices rose in April, while the core inflation gauge exceeded the Federal Reserve’s target of 2%.

Market participants will focus this week on important economic readings from the US, including the non-farm payrolls data due on Friday.

As for other precious metals, silver increased 0.4% to $28.17 an ounce, after touching its highest level in two weeks earlier in the session.

Palladium rose 0.8% to $ 2852.93, and platinum rose 0.2% to $ 1188.86.