Technical analysis suggested that gold might be due for a correction as it approaches a resistance at $1,557.75, the June 22 high, said Wang Tao, a Reuters market analyst.
China, the world's largest gold producer, said its gold output in the first five months of the year grew 3.67 percent from a year earlier to 132.02 metric tones. The country produced 340.88 metric tones of gold in 2010, up 8.
China, the world's largest gold producer, said its gold output in the first five months of the year grew 3.67 percent from a year earlier to 132.02 metric tones. The country produced 340.88 metric tones of gold in 2010, up 8.
Stubbornly high inflation in China has driven investors to bullion, seen as a safe storage of value.
China's inflation quickened to a three-year high in June, and investors are watching out for further tightening measures from Beijing, who vowed to fight rising prices as its top priority.
"Worries that China could continue raising rates after the stronger-than-expected CPI figures over the weekend may also weigh on gold in the near-term," said Tom Pawlicki, an analyst at MF Global in a research note.
Spot silver [XAG= 35.80
0.12 (+0.34%) 
] edged up 0.3 percent to $35.80. It hit a one-month high of $36.89 in the previous session.
U.S. silver [SICV1 35.725 0.027 (+0.08%) ] gained 0.4 percent to $35.84.
China's inflation quickened to a three-year high in June, and investors are watching out for further tightening measures from Beijing, who vowed to fight rising prices as its top priority.
"Worries that China could continue raising rates after the stronger-than-expected CPI figures over the weekend may also weigh on gold in the near-term," said Tom Pawlicki, an analyst at MF Global in a research note.
Spot silver [XAG= 35.80
0.12 (+0.34%) ] edged up 0.3 percent to $35.80. It hit a one-month high of $36.89 in the previous session. U.S. silver [SICV1 35.725
0.027 (+0.08%) ] gained 0.4 percent to $35.84.Copyright 2011 Thomson Reuters. Click for restrictions.
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