Gold prices were popping Tuesday as investors turned to gold as safe-haven asset after a slew of disappointing economic data.
Gold for December delivery was adding $24.50 to $1,271.10 an ounce at the Comex division of the New York Mercantile Exchange. The U.S. dollar index was adding 0.03% to $81.90 while the euro was losing 0.19% to $1.28 vs. the dollar. The spot gold price was rising $14.30, according to Kitco’s gold index.
Gold prices got a lift Tuesday on inflation worries out of the U.K. and a weaker-than-expected eurozone industrial production report.
Inflation fears jump-started the gold market in early trading after the U.K. consumer price index rose 3.1% in August from a year earlier. Economists were expecting a rise of 2.9%, but higher food, clothing and air travel moved the index higher. Gold is the go-to commodity when investors panic over inflation as gold is a form of money that retains some value. Unlike paper currencies, gold’s value can never go to zero.