Gold Gains as Wholesale Prices Fuel Inflation Cconcern

Gold futures rose as a U.S. government report showed wholesale prices climbed in May for the first time in three months, increasing the appeal of the precious metal as a hedge against inflation.

The producer-price index rose 0.5 percent after falling 0.7 percent in April, which was the biggest drop in more than three years, Labor Department data showed. The median estimate in a Bloomberg survey projected the measure would gain 0.1 percent. Gold has plunged 17 percent this year after some investors lost faith in the metal as a store of value, while consumer costs rose the least in five decades.