Gold advanced for the first time in three days after a government report showed the cost of living in the U.S. increased by the most in six months, boosting the appeal of the precious metal as a hedge against inflation.
The consumer-price index rose 0.3 percent, the most since June, following no change the prior month, a Labor Department report showed. Gold slumped 28 percent last year as some investors lost faith in the metal as store of value and consumer costs climbed 1.5 percent in 2013, the smallest calendar-year gain since 2010.
“Inflation is back on everyone’s radar,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “The safe-haven appeal is back to an extent.”
Gold futures for February delivery rose 0.3 percent to $1,242.30 an ounce at 9:50 a.m. on the Comex in New York. Prices fell 1 percent in the previous two sessions.