WASHINGTON (dpa-AFX) - Gold prices surged higher on Friday as data showing a bigger than expected increase in U.S. consumer price inflation triggered a sell-off in equity markets and boosted the demand for the safe-haven commodity.
The dollar index surged to 104.23 before paring some gains, dropping to 104.11, still up with an impressive gain of 0.86%.
Gold futures for August ended higher by $22.70 or about 1.2% at $1,875.50 an ounce. Gold futures for August gained about 1.4% in the week.
Silver futures for July ended up by $0.114 at $21.931 an ounce, while Copper futures for July settled at $4.2945 per pound, down $0.0865 from the previous close.
U.S. Labor Department showed consumer prices in the country shot up by more than expected in the month of May raised concerns about the outlook for interest rates.
The Labor Department said its consumer price index jumped by 1% in May after rising by 0.3% in April. Economists had expected consumer prices to increase by 0.7%.
A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. has tumbled to its lowest level on record in the month of June.
The preliminary data showed the consumer sentiment index plunged to 50.2 in June from 58.4 in May. Economists had expected the index to edge down to 58.0.
Investors also chose the safe-haven yellow metal following imposition of fresh lockdown measures in several parts of Shanghai due to a surge in coronavirus cases.
China said it will reimpose Covid-19 lockdowns in eight out of 16 of Shanghai's districts after the country's largest economic hub recorded a cluster outbreak of COVID-19. Parts of Beijing have also reimposed some restrictions, raising fears of reduced demand from the world's largest crude importer.
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