Gold up on weak US dollar, falling stocks

Chicago: 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 $4.5 US, or 0.41 percent, to settle at 1,090.10 dollars per ounce on Thursday, Xinhua reported.

Gold was given support as the US Dollar Index fell by 0.08 percent to 97.82 as of 7 p.m. GMT. 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 also found some support from haven buying from investors as US stocks fell sharply.

Traders are also waiting for the US department of labour to release the scheduled jobs report on Friday. This report is likely to set expectations for the timing of the US central bank’s interest rate increase.

An increase 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 12.4 cents, or 0.85 percent, to close at 14.677 dollars per ounce. Platinum for October delivery rose $5.1, or 0.54 percent, to close at $956.00 per ounce.