Gold gains on weak dollar, inflation concerns

Gold prices soared Wednesday as the US dollar weakened and on demand as investors look to protect their money after recent economic data has implied that inflation could increase soon.

The US consumer price index was up 0.4 percent in August, according to the Labor Department, while industrial production was up in the US and producer prices and retail sales were all up last month.

December gold traded as high as $1,023 per troy ounce during the session and by the end of the trading day in New York, December contracts had added $13.90 to trade at $1,020.20 per troy ounce.

Gold hasn’t traded as high in over a year.

Other precious metals prices were also higher, as December silver was up 43 cents to $17.43 per troy ounce and October platinum gained $29.80 to $1,349.90 per troy ounce.

Earlier, in late morning trade, December palladium added $3.70 to trade at $299.95 per troy ounce.

Among base metals, December copper traded 9 cents higher to $2.94 per pound in New York, while three-month copper traded at $6,376 per tonne during the session, nearly 3 percent higher than Tuesday’s close on the London Metal Exchange.