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Gold prices increase for second straight day


Gold closed higher for the second consecutive day amid the release of mixed U.S. economic data and revamped metal trading in Asia.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery jumped 7.60 points, or 0.63% to $1,209.10 a troy ounce. Gold reached a high of $1,219.90.
On Tuesday, gold dropped to $1,190 to reach a seven-week low, before settling at $1,197.30, down 0.29% or $3.50.
Futures were likely to find support at $1,177.80, the low from January 5, and resistance at $1,215.30, the high from February 20.
At one point on Thursday, prices on the Shanghai Gold Exchange reached several dollars higher per ounce in comparison with international gold prices. China ranks second in the world behind India in gold purchases.
Gold prices dipped earlier this week as Chinese markets remained closed for Lunar New Year celebrations.
Gold rose steadily on Thursday following reports of lowering U.S. inflation. The Consumer Price Index (CPI) fell 0.7% in January, slightly below estimates of a 0.6% decline. The drop in inflation was the largest decline since December, 2008. The CPI, which slipped 0.3 percent in December, experienced a decline for the third straight month.
The reports were released one day after Janet Yellen concluded the first of her two semi-annual appearances before Congress. Yellen, the Federal Reserve chair, indicated that the U.S. central bank will delay its plan of raising interest rates until wages increase and inflation moves closer to its targeted goal of 2%.
A delay in raising interest-rates is often regarded as a positive sign for gold, as it lowers the price of holding onto the precious metal.
Meanwhile, silver futures for May delivery increased 0.027 or 0.16% to $16.58 a troy ounce.
Elsewhere on Comex, copper for May delivery rose 0.003 or 0.10% to $2.694 a pound.

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