Gold up on weaker US dollar

Chicago, Sep 2 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange rose as the US dollar showed weakness.

The most active gold contract for December delivery rose $7.3 (0.64 percent) on Tuesday, to settle at $1,139.80 per ounce, Xinhua news agency reported on Wednesday.

The US Dollar Index fell by 0.56 to 95.39. The index is a measure of the dollar against a basket of major currencies.

Gold and the 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.

Gold was put under additional pressure as a report released by the Institute for Supply Management showed its ISM index coming in at a lower than expected 51.1. Analysts say this is the slowest rate of growth for the factory sector since May 2013.

Analysts believe increase in the price of gold is only temporary and that as long as an increase in the US interest rate becomes more likely, gold will remain under pressure.

Silver for December delivery rose 3.4 cents (0.23 percent) to close at $14.62 per ounce.

Platinum for October delivery fell $2.1 (0.21 percent) to close at $1,008.40 per ounce.

Leave a Reply

Please enter your comment!
Please enter your name here