Gold Surges to Near $1220 as U.S. Dollar Drops

Gold rose two percent to above $1,200 an ounce on Wednesday, heading for a second session of gains as the dollar hit a near three-month low after disappointing U.S. employment data.

U.S. retail sales were also unchanged in April as households cut back on purchases of automobiles and other big-ticket items, suggesting the economy was struggling to make a strong rebound after barely growing in the first quarter.

Spot gold hit a five-week high of $1,218 an ounce after the U.S. data and was last trading up 1.8 percent at $1,214.30. U.S. gold futures for June delivery settled up $25.80 at $1,218.20 an ounce, its highest settle since early April.