Gold futures settled higher on Tuesday as the demand for the safe-haven commodity rose after data showed an acceleration in U.S. consumer price inflation in the month of March. Data released by the Labor Department showed annual inflation rate in the U.S. jumped to 2.6% in March, from 1.7% in February. The drop in bond yield and a weak dollar also supported gold prices.
Gold futures for June rose around 0.9% to settle at $1,747.60 an ounce on the Comex division of the New York Mercantile. Spot gold was up 0.7% at $1,744.33 per ounce.