COMEX gold rose in see-saw trade Friday morning as another economic report pointed to mounting inflation pressures, but wavered as the dollar tried to rally back in activity reminiscent of Thursday's pattern.
The Labour Department's Consumer Price Index for April rose 0.2 percent. The gold and currency markets focused on core CPI, which excludes food and energy prices, which rose 0.3 percent, more than the 0.2 percent forecast by economists.
Gold has historically been used as an inflation hedge and the June contract gained as much as $2.30 after the report. But the rally was short-lived and the market remains unsettled above the 7-month low set at the start of the week.
At 10 am EDT (1400 GMT), June gold was up $2.10 at $377 an ounce, trading at $377.90 to $373.20. "It's that simple," said a bullion trader. "The markets are a little short and it's Friday."
Gold likewise saw Thursday morning's gain stunted, despite a surprising 0.7 percent surge in April producer prices that signalled inflation in the pipeline from rising raw material and crude oil prices.
Spot gold was quoted at $375.50/6.25, down from the close at $376.05/75. London's morning fix was at $373.50.
July silver was up 11.5 cents at $5.73 an ounce, trading from $5.75 to $5.66. Spot silver was at $5.73/77, up from $5.60/64 last night. Bullion dealers fixed silver at $5.56.
NYMEX July platinum was 60 cents easier at $794 an ounce. Spot platinum last traded at $793/797. June palladium fell $2.60 to $241.10. Spot was last quoted at $235/240.
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