Gold up on mixed US data, weaker dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as U.S. economic data reports came in with mixed results and the U.S. dollar weakened.

The most active gold contract for December delivery rose 9.4 U.S. dollars, or 0.7 percent, to settle at 1,356.9 dollars per ounce.

Gold was given support as a report released by the U.S. Department of Labor on Tuesday showed the consumer price index remaining unchanged during the month of July, which analysts note was in line with expectation but still added support to the precious metal because lack of inflation makes a U.S. interest rate hike less likely.

Gold was given further support as the U.S. Dollar Index fell by 0.85 percent to 94.79 as of 1915 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.

Silver for September delivery rose 2.7 cents, or 0.14 percent, to close at 19.874 dollars per ounce. Platinum for October delivery rose 7.8 dollars, or 0.7 percent, to close at 1,124.1 dollars per ounce.

Source : XINHUA