Increasing consumer prices helped push up values for precious metals Tuesday afternoon, which saw gold futures touch their two-week high and silver futures surpass $30 per troy ounce, Bloomberg reports.
After 4 p.m. on Tuesday, gold futures were up 1.17 percent, a $15.80 increase to $1,364 per troy ounce. Silver futures were up 3.26 percent, a 0.957 cent increase to $30.30 per troy ounce. March-delivery platinum was up $9.30 to $1,850.10 per troy ounce while march-delivery palladium was up $19.35 to $838.40 per troy ounce.
"People are buying gold as an inflation hedge," Matthew Zeman, a trader at LaSalle Futures Group in Chicago, told the news service. "A more hawkish tone on the part of central banks is going to have people concerned about inflation."
By raising interest rates this year, China joins India, Indonesia, Thailand and South Korea in its efforts to ward off inflation. Efforts are underway to cool off the strength of global economies that are rapidly assuming leadership positions for the global rebound. Inflation in China expanded more quickly than it has in 30 months, according to a report.
The United Nations announced world food prices in January increased to record levels and will remain high.
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