Gold settles higher as US dollar, stocks fall
Chicago: Gold futures on the COMEX division of the New York Mercantile Exchange gained for the second day in a row as the US dollar weakened and stock benchmarks retreated.
The most active gold contract for December delivery was up $10.10, or 0.69 per cent, to close at $1,473.40 per ounce on Thursday, Xinhua news agency reported.
US stocks traded lower on Thursday. Shortly before gold’s settlement, the Dow Jones Industrial Average decreased 35.40 points, or 0.13 per cent, to 27,748.19 points. The S&P 500 and Nasdaq Composite Index followed Dow’s fall.
When equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.
Meanwhile, the US dollar index, a gauge of the greenback against a basket of other major currencies, was down 0.21 per cent to about 98.17 on Thursday. When the dollar weakens, it makes the dollar-priced less expensive for investors holding other currencies.
Another support came from the US government debt. The yield on the benchmark 10-year Treasury note was lower at around 1.824 per cent as investors flocked to other safe assets, such as gold.