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Gold up on weaker U.S. dollar
Last Updated: 2016-08-16 04:00 | Xinhua
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Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as the U.S. dollar weakened.

The most active gold contract for December delivery rose 4.3 U.S. dollars, or 0.32 percent, to settle at 1,347.5 dollars per ounce.

The U.S. Dollar Index, a measure of the dollar against a basket of major currencies, fell by 0.1 to 95.61 as of 1730 GMT.

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.

The precious metal was prevented from rising further as the U.S. Dow Jones Industrial Average rose by 75 points, or 0.41, as of 1730 GMT.

Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The U.S. Federal Reserve is due to release minutes of its July Federal Open Market Committee Meeting (FOMC) on Wednesday.

Investors believe that although the U.S. central bank has left the door open for a rate increase during 2016, the GDP numbers in the second quarter make it unlikely for a rate hike during the year. Previous Fed minutes led traders to believe that the Fed may raise rates from 0.50 to 0.75 during the December FOMC meeting.

According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 12 percent at the September 2016 meeting, 14 percent at the November 2016 meeting, and 43 percent at the December meeting.

Traders are also waiting for the release of the consumer price index, industrial production report, and housing starts report on Tuesday, along with the jobless claims report and Philadelphia Federal Reserve outlook report, due on Thursday.

Silver for September delivery rose 14.4 cents, or 0.73 percent, to close at 19.847 dollars per ounce. Platinum for October delivery fell 13 dollars, or 1.15 percent, to close at 1,116.3 dollars per ounce.

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