New York gold futures rose to a two-month high above $1,250 an ounce early on Tuesday after data showed improving US consumer confidence and rising prices for US homes. US gold December futures were up $10 at $1,249.20 an ounce at 11:25 pm EDT (1525 GMT) on the COMEX division of the NYMEX. The session high was $1,250.40, the loftiest price since June 30.
Gold was set to end August at its highest for two months on Tuesday after more data highlighted the cracks in the US economic recovery, pushing bullion prices up for a third day. Gold is on track to post its biggest monthly percentage gain since April in August, after a raft of soft US economic data lifted its appeal as a haven from risk. "People are fearful enough of what else is going on in the economy and that is sufficient to justify what is going on in gold," said Peter Hillyard, head of metal sales, Europe at ANZ.
Data on Tuesday showed a slowing in business activity in August in New York City, the home of Wall Street, while consumer confidence rose in August and prices for US single-family homes staged a larger rise than expected in June and rose in the second quarter.
So, the chances are high for gold to rise above its all-time high of $1,264.90 an ounce later this year, analysts said. "We are lacking momentum at the moment," said Credit Suisse analyst Tom Kendall. "Looking through to September and beyond, we expect to see new highs in dollar terms. But short term, we have to consolidate."
Silver followed gold's lead, rising by about 1.5 percent to around $19.24 an ounce, up from $18.96 late on Monday. Silver has gained nearly 7 percent in August, its best monthly performance since a 13.1 percent gain in November 1999.
Platinum was at $1,520.90 an ounce against $1,525.20, while palladium was at $498.35 against $493.93, having recovered from an earlier drop to an intraday low at $483.75.
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