Gold futures close with an over $7 gain

BY

Gold futures closed with a more than $7-an-ounce gain Tuesday, marking their first winning session in four as silver prices rebounded from a seven-week low.

The surprisingly high inflation figures are spurring the metal markets higher as the U.S. dollar drops on the news.

Gold may falter on this rise and require a short-term period of consolidation around the lower $600s before marching back up.

The dollar fell against the euro Tuesday after a key survey of Germany's business climate rose to its highest level in 16 years, boosting expectations interest rates in the eurozone would climb further next year

The weakness allowed precious metals to rebound from Monday's lows -- levels gold and silver prices haven't seen since the end of October.

The decline in the dollar comes even after U.S. government reports showed producer prices soared in November, rising at the fastest pace in decades, while construction of new homes rebounded last month.

Producer prices rose much more than expected in November, as the core producer price index rose by the most since July 1980, the Labor Department said.

The November producer price index climbed by 2%, the biggest rise since November 1974, according to statistics.

Meanwhile, construction on new homes rebounded in November, rising 6.7% after a whopping 14% drop in October, the Commerce Department said. Building permits, meanwhile, fell 3% to a fresh nine-year low.

kellylei

thx

kwy

Thanks!!!!