Investing.com - Gold prices rose on Tuesday after Chinese inflation data beat expectations and bolstered the yellow metal's allure as a hedge to rising consumer prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.70% at USD1,243.55 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,232.05 and down from a high of USD1,258.65 a troy ounce.
Gold futures were likely to find support at USD1,214.55 a troy ounce, Monday's low, and resistance at USD1,266.55, the high from July 2.
China reported earlier that consumer prices rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.
Rising consumer prices often boost gold's appeal as a hedge.
Gold also rose amid sentiments that the metal may be oversold due to firming U.S. indicators that have strengthened the dollar, which tends to trade inversely with gold.
On Friday in the U.S., the Bureau of Labor Statistics reported the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.
The numbers fueled speculation that the Federal Reserve will begin tapering stimulus programs in the coming months.
Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the dollar and bolster gold, though talk of their dismantling has the reverse effect.
On Wednesday, the Federal Reserve will release the minutes of its June monetary policy meeting, which investors hope will provide more insight into the fate of stimulus measures that have sent gold prices soaring in recent years, though until then, bottom fishers pushed the precious metal higher.
Elsewhere on the Comex, silver for September delivery was up 0.46% at USD19.125 a troy ounce, while copper for September delivery was down 1.07% and trading at USD3.066 a pound.
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