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Gold Rises Amid Inflation Upswing

Gold prices rose Tuesday along with most commodities amid signs that U.S. inflation is finally picking up.

June gold climbed $5.80, or 0.4%, to settle at $1,345.90/oz.

Producer prices in the U.S. increased by more than expected in the month of March, according to a report released by the Labor Department on Tuesday. Prices were range-bound for the previous few sessions amid uncertainty over U.S.-China trade relations and volatile stocks.

The Labor Department said its producer price index rose by 0.3 percent in March after edging up by 0.2 percent in February. Economists had expected producer prices to inch up by 0.1 percent.

"This pipeline price pressure will feed into consumer prices soon and will ultimately prompt the Fed to hike interest rates an additional three times this year," said Paul Ashworth, Chief U.S. Economist at Capital Economics.

On Wednesday, the Labor Department is scheduled to release a separate report on consumer price inflation in the month of March.

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