Gold price settles higher as US dollar, stocks fall
Gold futures on the COMEX division of the New York Mercantile Exchange gained for the second day in a row as the US dollar weakened and stock benchmarks retreated.
Chicago: Gold futures on the COMEX division of the New York Mercantile Exchange gained for the second day in a row as the US dollar weakened and stock benchmarks retreated.
The most active gold contract for December delivery was up $10.10, or 0.69 per cent, to close at $1,473.40 per ounce on Thursday, Xinhua news agency reported.
US stocks traded lower on Thursday. Shortly before gold`s settlement, the Dow Jones Industrial Average decreased 35.40 points, or 0.13 per cent, to 27,748.19 points. The S&P 500 and Nasdaq Composite Index followed Dow`s fall.
When equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.
Meanwhile, the US dollar index, a gauge of the greenback against a basket of other major currencies, was down 0.21 per cent to about 98.17 on Thursday. When the dollar weakens, it makes the dollar-priced less expensive for investors holding other currencies.
Another support came from the US government debt. The yield on the benchmark 10-year Treasury note was lower at around 1.824 per cent as investors flocked to other safe assets, such as gold.