Gold continues to rise as dollar weakens

Source: Xinhua| 2018-03-27 05:04:42|Editor: yan
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CHICAGO, March 26 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled higher on Monday as U.S. dollar continued to weaken.

The most active gold contract for April delivery rose 5.10 U.S. dollars, or 0.38 percent, to settle at 1355.00 dollars per ounce. It's the fourth consecutive day for gold to post gains.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, fell 0.44 percent to 89.04 as of 1632 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures will rise as gold, priced in the dollar, become cheaper for investors using other currencies.

Geopolitical tension also offered support to gold, a safe-haven asset, as Washington on Monday announced to expel 60 Russian diplomats and close the Russian consulate in Seattle in response to the use of a nerve agent to poison a former Russian spy living in Britain, an allegation that Moscow has strongly denied.

However, the Dow Jones Industrial Average rebounded on Monday, rising 421.58 points, or 1.79 percent to 23,954.78 as of 1643 GMT.

The rally of equities followed a Fox News report that U.S. officials were having negotiations with their Chinese counterparts in an effort to avoid a possible trade war, which had prompted deep concerns and sunk the stocks last week.

As for other precious metals, silver for May delivery went up 10.2 cents, or 0.62 percent, to settle at 16.684 dollars per ounce. Platinum for April rose 2.00 dollars, or 0.21 percent, to close at 950.40 dollars per ounce.