Gold futures on the COMEX division of the New York Mercantile Exchange rose to a six-month high on Monday, as the precious metal was boosted by a weaker U.S. dollar as well as the big loss in benchmark U.S. stock indices.
Due to partial U.S. government shutdown and growing worries of a global recession, risk aversion was widespread across markets on Christmas Eve, bolstering gold's standing as a safe-haven.
The most active gold contract for February delivery jumped 13.70 U.S. dollars, or 1.09 percent, to settle at 1271.80 dollars per ounce.
The U.S. dollar index, which measures the buck against six rivals, went down 0.40 percent to 96.56 as of 1630 GMT.
Gold usually moves in opposite directions with the U.S. dollar, which means if the dollar goes strong, gold futures will fall as gold, priced in U.S. dollar, becomes expensive for investors using other currencies.
Meanwhile, the Dow Jones Industrial Average dropped 653.17 points, or 2.91 percent as of 1655 GMT. The S&P 500 and Nasdaq also followed Dow's plunge. When equities post losses, investors may start to buy safe-haven assets, such as gold.
As for other precious metals, silver for March delivery rose 11.80 cents, or 0.80 percent, to settle at 14.82 dollars per ounce. Platinum for January delivery was down 6.40 dollars, or 0.80 percent, to close at 789.4 dollars per ounce. Enditem
Due to partial U.S. government shutdown and growing worries of a global recession, risk aversion was widespread across markets on Christmas Eve, bolstering gold's standing as a safe-haven.
The most active gold contract for February delivery jumped 13.70 U.S. dollars, or 1.09 percent, to settle at 1271.80 dollars per ounce.
The U.S. dollar index, which measures the buck against six rivals, went down 0.40 percent to 96.56 as of 1630 GMT.
Gold usually moves in opposite directions with the U.S. dollar, which means if the dollar goes strong, gold futures will fall as gold, priced in U.S. dollar, becomes expensive for investors using other currencies.
Meanwhile, the Dow Jones Industrial Average dropped 653.17 points, or 2.91 percent as of 1655 GMT. The S&P 500 and Nasdaq also followed Dow's plunge. When equities post losses, investors may start to buy safe-haven assets, such as gold.
As for other precious metals, silver for March delivery rose 11.80 cents, or 0.80 percent, to settle at 14.82 dollars per ounce. Platinum for January delivery was down 6.40 dollars, or 0.80 percent, to close at 789.4 dollars per ounce. Enditem
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