1st LD Writethru: Gold up on weak dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the U.S. dollar weakened amid lower U.S. equities.

The most active gold contract for April delivery rose 5.6 U.S. dollars, or 0.47 percent, to settle at 1,197.00 dollars per ounce.

Gold gained strength as the U.S. dollar index, a measure of the dollar against a basket of major currencies, fell by 0.36 percent to 96.88 in the midday session. The dollar decreased against the euro after German consumer sentiment data came out stronger than expected.

Gold and the dollar typically move in opposite directions, as a stronger greenback will make dollar-denominated gold futures more expensive for investors, hurting the bullion's appeal.

Gold was buoyed as U.S. stocks extended losses on Wednesday, after data showed that U.S. manufacturing sector remains weak.

New orders for manufactured durable goods in February unexpectedly decreased 3.2 billion dollars, or 1.4 percent, to 231. 3 billion dollars, well below market expectations of a modest gain, the U.S. Commerce Department said Wednesday.

Silver for May delivery rose 1.7 cents, or 0.10 percent, to close at 17 dollars per ounce. Platinum for April delivery added 5 dollars, or 0.44 percent, to close at 1,146.50 dollars per ounce. Endite