Gold up on weaker US dollar during low volume holiday trading

Chicago

GOLD futures on the COMEX division of the New York Mercantile Exchange rose on Thursday last week as the US dollar showed weakness during low-volume holiday trading.

The most active gold contract for February delivery rose US$7.6 or 0.71 per cent, to settle at US$1,075.90 per ounce.

The precious metal was given support on a weaker US dollar. The US Dollar Index fell by 0.46 per cent to 97.94 as at 17.00 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 that if the dollar goes up, gold futures will fall as gold, which is measured by the dollar, becomes more expensive for investors.

Gold's rise was capped by a report issued by the US Department of Labor showing initial jobless claims falling by 5,000 to …