By Laura Mandaro, MarketWatch SAN FRANCISCO (MarketWatch) -- Gold and silver futures turned higher in early U.S. trading after a wave of inflation and manufacturing data underlined concerns the U.S. economic recovery had hit a speed bump, raising the allure of assets seen as safe havens. Gold for August delivery GC1Q +0.52% was up $7, or 0.5%, to $1,531.60 an ounce on the Comex division of the New York Mercantile Exchange. It had traded lower for much of the European electronic trading session. Silver for July delivery SI1N +1.21% rose 9 cents, or 0.3%, to $35.49 an ounce. Precious metals futures -- typically valued as a hedge against currency devaluation, inflation, and general uncertainty -- had pared losses after a rush of early U.S. data. The New York Federal Reserve said its index of manufacturing activity fell below zero to a negative reading for June, surprising economists who had on average expected a rebound to 13.3. The U.S. Labor Department said the consumer price indexed edged up a seasonally adjusted 0.2% in May, while inflation, excluding food and energy, gained 0.3% -- the biggest one-month increase since July 2008. Read more on consumer inflation. Both readings were higher than economists’ forecasts. And just ahead of the U.S. stock market open, the Federal Reserve said industrial output inched up 0.1% in May, under views, as Japanese earthquake-related disruptions weighed on manufacturing. U.S. stocks opened sharply lower. The Dow Jones Industrial Average DJIA -0.59% lost more than 100 points and was recently down 71.5 points, or 0.6%, at 12,004. The U.S. dollar was higher against a basket of currencies and, notably, the euro. The U.S. dollar index DXY +0.82% rose to 75.019 from 74.354 late Tuesday. Read more on currencies.

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