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IPFS News Link • Gold and Silver

Gold keeps rising on tension in Iraq


The most active gold contract for August delivery rose 2.9 U.S. dollars, or 0.22 percent, to settle at 1,321.3 dollars per ounce.

Fighting in Iraq has intensified and Iraqi Prime Minister Nuri al-Maliki pledged to form a new government before July 1.

Gold also gained certain support from a Tuesday report showing that the Ifo Institute lead indicator, an indicator of Germany business confidence, was 109.7 in June, worse than economists' expectation.

Concerns over inflation were another factor that supported gold. Philadelphia Federal Reserve President Charles Plosser said Tuesday in an exclusive interview with FOX Business that interest rates might have to be raised sooner than forecast if unemployment continues to fall and inflation continues to rise.