Gold up on weaker US dollar

Chicago, Aug 13 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange rose on a weaker US dollar.

The most active gold contract for December delivery rose $15.9, or 1.44 percent, to settle at $1,123.60 per ounce on Wednesday, Xinhua reported.

The US dollar index fell by 0.96 percent to 96.27. 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 given additional support as a report from the US labour department showed job openings and labour turnover survey index falling to 5.249 million from 5.357 million.

This report may also influence plans for the expected increase in the US central bank’s interest rate. A rise in the Fed’s interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.

There has not been an increase in the Fed’s interest rate since June 2006, before the beginning of the American financial crisis.

Silver for September delivery added 19.2 cents, or 1.26 percent, to close at $15.476 per ounce. Platinum for October delivery added $7.6, or 0.77 percent, to close at $999.90 per ounce.

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