By Nick Godt, MarketWatch
NEW YORK (MarketWatch) -- Gold futures received a boost from a weaker dollar early Thursday, with the U.S. currency coming under further pressure after a number of economic reports pointed to slower growth and reduced price pressures.
U.S. producer prices fell 0.5% in June, with core prices rising 0.1%, while a manufacturing index signaled slower conditions in the New York region.
In recent trading, gold for August delivery rose $3.70, or 0.3%, to $1,210.70 an ounce on the Comex division of the New York Mercantile Exchange, after reaching as high as $1,215.40 an ounce.
On Wednesday, the Federal Reserve lowered its forecast of U.S. economic growth, and signaled it was examining additional stimulus measures. Additional liquidity should be bullish for gold, which tends to act as a hedge against currencies.
Further fueling support for the precious metal, Goldman Sachs lifted its 12-month target for gold by 1.5% to $1,355 an ounce, citing a low-interest rates environment and concerns over European debt.
