Gold futures on the COMEX division of the New York Mercantile Exchange futures ended higher Tuesday for a second session in a row, boosted by a bigger-than-expected climb in China's June consumer prices.
The most active gold contract for August delivery rose 11 U.S. dollars, or 0.89 percent, to 1,245.9 dollars per ounce. However, the gains of Monday and Tuesday didn't make up for last Friday's drop of 3.1 percent.
Early Tuesday, data released by the Chinese government showed the consumer price index rose 2.7 percent year on year in June, The figure was above the 2.5 percent estimated by market analysts, leading investors to expect more demand for gold from China as an inflation hedge, analysts say.
Nevertheless, some analysts believe, gold is also at risk for more selling on Wednesday, when the U.S. Federal Open Market Committee's minutes of its June 18-19 currency policy meeting will be released, according to MarketWatch.
Against this background, silver for September delivery rose 10 cents, or 0.53 percent, to close at 19.138 dollars per ounce.