Gold up on weak US data

Chicago, Aug 1 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange rose as the US employment cost index report was much worse than expected.

The most active gold contract for December delivery rose $6.4 (0.59 percent), to settle at $1,095.10 per ounce, Xinhua reported.

A report released by the US department of labour showed the employment cost index rising 0.2 percent, which is the smallest increase in 33 years.

A rise in the Fed’s interest rate drives investors away from gold as gold bears no interest.

The dollar index fell by 0.27 percent to 97.22, giving support to gold. The index is a measure of the dollar against a basket of major currencies.

Gold and dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for September delivery rose 4.9 cents (0.33 percent), to close at $14.765 per ounce. Platinum for October delivery fell $5 (0.49 percent), to close at $985 per ounce.

 

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