Gold rises on physical buying from Asia

CHICAGO -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on physical buying from Asia Wednesday.

The most active gold contract for December delivery gained $12.9, or 0.98 percent, to settle at $1,333.4 per ounce.

Though India raised import duty on gold Tuesday for the third time this year in an effort to cut a record current account deficit, the country's demand for gold is still expected to pick up later due to seasonal reasons. Meanwhile, physical demand for gold from China remained strong.

Economic data released Wednesday were neutral. The US Labor Department reported that the producer price index (PPI) was unchanged in July, while the core producer-price index increased only 0.1 percent.

Furthermore, gold exchange-traded-funds (ETFs) selloff has come to a halt, as holding in the world's biggest gold ETF, SPDR Gold Trust, has remained unchanged at 911.13 metric tons for three days by Tuesday.

Silver for September delivery rose 44.4 cents, or 2.08 percent, to close at $21.787 per ounce. Platinum for October delivery climbed $5.5, or 0.37 percent, to close at $1,505.2 per ounce.