Gold Price Rises on US Industrial Output Figures

Precious Metals

A 0.6-percent decline in US industrial output diminished the dollar’s worth against world currencies and sent the gold price up 0.2 percent, to $1,195.51 an ounce.

A 0.6-percent decline in US industrial output diminished the dollar’s worth against world currencies and sent the gold price up 0.2 percent, to $1,195.51 an ounce, according to Reuters. Conversely, gold for June delivery fell $3, to $1,195.60 an ounce.

Daniel Briesemann, an analyst at Commerzbank AG (ETR:CBK), noted, “as long as we have weak economic figures out of the U.S., it is less likely that the Fed will start raising interest rates sooner rather than later.” Low interest rates increase the appeal of safe-haven commodities that do not pay interest.

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