By William L. Watts
NEW YORK (MarketWatch) -- Gold futures extended gains Friday after U.S. data showed wholesale inflation jumped more than expected in May. Gold for August delivery traded up $10 at $1,387.80 an ounce in recent action and traded as high as $1,390.40 after the Labor Department said producer prices rose by a seasonally-adjusted 0.5%, marking the first increase in three months. Economists surveyed by MarketWatch had forecast a 0.1% increase. Excluding the volatile food and energy sectors, so-called core producer prices rose by just 0.1%, in line with forecasts. Gold can benefit from stronger-than-expected inflation due in part to its role as a hedge against inflation.
