WASHINGTON (dpa-AFX) - Gold prices climbed higher on Thursday as the dollar faltered after recovering from lower levels.
The dollar index rose to 104.23 after data showed a bigger than expected increase in U.S. producer prices in the month of January.
The dollar index subsequently began to drift lower and was last seen at 103.91, down slightly from the previous close.
Gold futures for April ended higher by $6.50 or about 4% at $1,851.80 an ounce.
Silver futures for March ended up $0.138 at $21.710 an ounce, while Copper futures for March settled at $4.1355 per pound, gaining $0.1250.
The Labor Department said its producer price index for final demand climbed by 0.7% in January after edging down by a revised 0.2% in December. Economists had expected producer prices to increase by 0.4% compared to the 0.5% drop originally reported for the previous month.
The report also showed the annual rate of producer price growth slowed to 6% in January from 6.5% in December. The year-over-year growth was expected to slow to 5.4%.
Following the consumer price inflation and retail sales data released earlier this week, the report added to worries about the outlook for interest rates.
Traders have recently expressed concerns the Federal Reserve will raise rates higher than currently anticipated in an effort to combat inflation.
A separate Labor Department report showed first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended February 11th, dropping to 194,000, a decrease of 1,000 from the previous week's revised level of 195,000.
Economists had expected jobless claims to inch up to 200,000 from the 196,000 originally reported for the previous week.
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