Markets > Commodities

Gold surges to new high as U.S. dollar extends fall

CHICAGO
2017-08-29 08:41

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Gold futures on the COMEX division of the New York Mercantile Exchange surged on Monday to new high since the end of last September, buoyed by a weakening U.S. dollar.

The most active gold contract for December delivery rose 17.40 dollars, or 1.34 percent, to settle at 1,315.30 dollars per ounce.

U.S. dollar Index saw a continuous downturn, reaching 92.21 as of 1816 GMT, its lowest level since January 2015.

The index is a measure of the dollar against a basket of other major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures will rise.

Traders failed to find factors supporting the dollar's outlook from U.S. Federal Reserve Chair Janet Yellen's speech at a central bankers' meeting last week. Meanwhile, the Euro rose to its highest level against the U.S. dollar in more than two years.

The Dow Jones Industrial Average fell 27.16 points, or 0.12 percent, to 21,786.51 as of 1826 GMT Monday. When equities post losses, the gold futures usually rise.
Hurricane Harvey, said some analysts, adds uncertainty to the impending budget and debt ceiling debates in Washington.

As for other precious metals, silver for September delivery rose 39.2 cents, or 2.3 percent, to close at 17.441 dollars per ounce. Platinum for October increased 10.20 dollars, or 1.04 percent, to settle at 989.30 dollars per ounce.
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