RTTNews - Gold edged higher on Tuesday and recovered some of its losses from the previous session. The dollar saw some weakness, adding to gold's hedge appeal.
December gold rose to $937.50 per ounce, up $3.40 on the session. Prices reached as high as $941.60 and as low as $935.
The dollar saw modest weakness against the euro and also fell against the pound after surging in the prior session amid economic worries that boosted the value of lower-yielding currencies. Gold usually moves opposite the dollar.
The U.S. Labor Department revealed that producer prices dropped 0.9 percent in July. This followed an advance of 1.8 percent in the previous month. Economists had expected the measure to slip 0.3 percent for the month.
Core prices, which exclude the volatile food and energy sectors, ticked down 0.1 percent in July. Economists were looking for core prices to edge up by 0.1 percent.
A Commerce Department report showed that housing starts fell 1.0 percent to an annual rate of 581,000 in July from the revised June estimate of 587,000. Economists had expected starts to rise to 598,000 from the 582,000 originally reported in the previous month.
There is no major economic data due on Wednesday.
On Monday, gold fell $12.70 for the session, and posted its lowest close since July 29. The metal hit as low as $931.30 earlier in the day.
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