Gold rises on weaker dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose Wednesday on a weaker dollar. The most active gold contract for June delivery rose 3.5 dollars, or 0.27 percent, to settle at 1,284.6 dollars per ounce. The U.S. dollar index, a gauge of greenback against a basket of currencies, dropped 0.1 percent to 79.850 Wednesday. A weaker dollar usually makes dollar-denominated commodities less expensive for nondollar consumers, and therefore supporting gold. Economic data released Wednesday also offered support to gold. The initial Markit purchasing managers' index (PMI) for U.S. fell slightly to 55.4 in April from 55.5 in March. Gold further gained support Wednesday from tensions in Ukraine and weakness in U.S. equities. Market analysts believe that gold will consolidate a little in dull trading this week unless selling intensifies and gold prices close below 1,278 dollars. Silver for May delivery rose 7.7 cents, or 0.4 percent, to close at 19.436 dollars per ounce. Platinum for July delivery gained 3.6 dollars, or 0.26 percent, to close at 1,403.9 dollars per ounce.