Gold goes up on dollar weakness
Gold futures prices on the COMEX division of the New York Mercantile Exchange continued to rise Monday, buoyed up by the weakened dollar after a positive read on U.S. manufacturing data.
The most active gold contract for June delivery climbed 7.8 dollars, or 0.5 percent, to settle at 1,679.7 U.S. dollars per ounce.
Market analysts said that gold extended rally as dollar surrendered earlier gains in the wake of an improved manufacturing sector. Dollar weakness usually makes assets priced in the U.S. unit cheaper for other currency holders.
A gauge that measures the strength of U.S. manufacturing sector, produced by the Institute for Supply Management, rose to 53.4 percent in March from 52.4 percent in the prior month. Reading over 50 percent indicates expansion in manufacturing industry.
A trader said gold recently performed more like a commodity than safe-haven instrument and the metal would tend to rally in the months ahead on the back of a wider improvement in the overall liquidity.
The most active silver contract for May delivery increased 61.4 cents, or 1.9 percent, to close at 33.098 dollars per ounce. Platinum for July delivery rose 10.8 dollars, or 0.66 percent, to settle at 1,654.9 dollars per ounce.