Gold up on weaker dollar

Chicago, Aug 11 (IANS) Gold futures on the COMEX division of the New York mercantile exchange rallied above $1,100 amid a weaker US dollar after falling for a seventh week in a row.

The most active gold contract for December delivery gained $10 (0.91 percent) to settle at $1,104.10 per ounce, Xinhua reported.

The US Dollar index fell by 0.43 percent to 97.17. 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.

The price of the precious metal was prevented from rising further as traders reacted to the jobs report released on Friday which put pressure on gold.

Analysts say the report supported a September increase in the US federal reserve’s interest rate. 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.

Silver for September delivery added 47.1 cents (3.18 percent) to close at $15.292 per ounce.

Platinum for October delivery rose $27.6 (2.87 percent) to close at $989.80 per ounce.

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