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Gold Prices Inch Higher as Bullish Bets Pile Up

Investing.com – Gold prices rose on Tuesday as traders increased their bullish bets on the pressure metal while dollar weakness lifted sentiment on the precious metal.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $4.11, or 0.32%, to $1282.95 a troy ounce.

Gold prices added to Monday’s gains, shrugging off a report showing wholesale inflation grew faster-than-expected in October.

The Labor Department said on Tuesday its producer price index for final demand increased 0.4% last month. In the 12 months through October, the PPI rose 2.8% after rising 2.6% in September.

The upbeat wholesale inflation report eased investor fears over the recent trend of slowing inflation, lifting expectations for a bullish consumer inflation report due Wednesday.

Gold prices have made a bold start to the week amid renewed safe haven demand following rising political uncertainty in UK amid reports of Tory rebellion mounting against UK Prime Minister Theresa May, while uncertainty over US tax reform continued to weigh on risk sentiment.

Supporting the uptick in sentiment on gold prices was data showing that traders increased their bullish bets on the precious metal for the second week in a row.

Net bullish bets on gold rose to 195,800, from 193,100 the previous week according to a report from the Commodity Futures Trading Commission (CFTC) on Monday.

In other precious metal trade, silver futures rose 0.10% to $17.06 a troy ounce, while platinum futures lost 0.72% to $928.90.

Copper traded at $3.06, down 1.78% while natural gas fell by 2.31% to $3.095.

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