Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as technical trading gave support to the precious metal despite the strengthening of U.S. dollar.
The most active gold contract for December delivery rose 1.3 U. S. dollars, or 0.12 percent, to settle at 1,090.70 dollars per ounce. Technical trading caused an increase in the price of gold as analysts say gold had its worst month in two years.
Gold was put under pressure as the U.S. Dollar Index rose by 0. 3 percent to 97.74 as of 18:07 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.
The precious metal was put under additional pressure as a report released by the U.S. Department of Commerce on Tuesday showed factory orders increasing by 1.8 percent. Analysts note that this is the second time in 11 months that the report showed an increase. Silver for September delivery rose 4.2 cents, or 0.29 percent, to close at 14.557 dollars per ounce. Platinum for October delivery fell 8.6 dollars, or 0.89 percent, to close at 958.50 dollars per ounce.
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