Gold hits $950 an ounce after strong US consumer inflation data

Gold futures shot up immediately after the release of the CPI numbers from US, increasing the appeal of the precious metal as a hedge against inflation. Inflation rose in March, the Labor Department reported Wednesday, as energy and food costs gained. After virtually no change in February, the consumer price index in March rose 0.3%. The core CPI, which excludes food and energy costs, rose 0.2% in March -- after no growth in the prior month.The US dollar once again headed towards the historical low levels versus the Euro after poor housing data. The starts fell 11.9% in March to a seasonally adjusted 947,000 annualized units, lowest level of starts since March 1991. Building permits, a leading indicator of housing construction, fell 5.8% to a seasonally adjusted annual rate of 927,000. This is the lowest level of permits since April 1991.Putting additional pressure on the greenback was the higher inflation numbers in Euro Zone. March euro-zone consumer inflation stood at an annual rate of 3.6%.MCX gold futures for the June contract hit the high of Rs 12236 per 10 grams, up Rs 256. it was recently seen quoting at Rs 12195 up Rs 204. The resistance is at 12270 and 12310 levels. The US oil inventories will set the further tone of the prices. Most active June contract on NYMEX is trading up $15.2 at $947.2 per ounce. The upside target is at 954 levels.