RTTNews - Gold posted its best finish in two weeks on Thursday as a weaker U.S. dollar added to the precious metal's value as a hedge investment. The metal gained for a third session in a row.
August gold settled at $939.40 per barrel, up $16.60. Prices climbed to as high as $942.30 earlier in the session.
The metal gained for a third straight session and has gained more than $28 on the week. With the rally, gold has erased last week's slump when it fell to a two-month low of $904.80.
The dollar fell to two-week low against both the euro and sterling on Thursday in New York as traders favored higher-yielding currencies with global stocks on the rise. The buck also dropped to its lowest level in more than a month against the Canadian loonie.
In economic news, the U.S. Labor Department revealed that consumer prices climbed 0.7 percent in June compared to the previous month. Economists had projected an advance of about 0.6 percent.
Meanwhile, the New York Fed said its general business conditions index rose to a negative 0.6 in July from a negative 9.4 in June, with a negative reading indicating a contraction in activity. Economists had been expecting a reading of negative 5.0.
In the afternoon, the minutes of the June meeting of the Federal Open Market Committee revealed that the Fed's GDP estimates were revised to show a smaller than expected decrease in 2009 and a bigger than expected increase in 2010.
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