Gold rose on Wednesday on a combination of increased inflationary pressure and ideas this week's Franco-German proposals will not solve the eurozone debt crisis. The metals third straight rise came as a report showed US core producer prices rose at their fastest pace in six months in July. Also encouraging bullion buying were remarks by Venezuelan President Hugo Chavez, who said on State television that he plans to nationalise the gold industry to pad the country's international reserves.
Spot gold was up 0.2 percent at $1,789.49 ounce by 3:10 PM EDT (1910 GMT), about $20 off last week's record $1,813. US gold futures for December delivery settled up $8.80 at $1,793.80 an ounce. Trading volume was lower than Tuesday's and sharply below last week's pace when the metal rose to records amid high volatility. Silver was up 1.2 percent at $40.34 an ounce.
Among platinum group metals, platinum was up 1.2 percent at $1,832.74 an ounce, supported by inflows into ETFs and against a backdrop of threatened strikes in South Africa, the world's largest producer of the metal. Palladium rose 2.4 percent to $770.70 an ounce, tracking platinum.
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