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1st LD Writethru: Gold up on weaker dollar

Xinhua, June 16, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as the U.S. dollar showed weakness.

The most active gold contract for August delivery was up 6.6 U. S. dollars, or 0.56 percent, to settle at 1,185.80 dollars per ounce.

Gold was given a boost as the U.S. dollar index, a measure of the dollar against a basket of major currencies, fell by 0.24 percent to 94.87 as of 1735 GMT. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the greenback, becomes more expensive for investors.

As positive economic data continues to come in, traders are watching for signs of an increase in the U.S. interest rate. Investors were looking ahead to a meeting of U.S. Federal Reserve policymakers this week, and especially towards their statement after the two-day policy meeting ends on Wednesday.

Strong economic data out of the country last week has raised expectations that the central bank is on track to raise interest rates, possibly as soon as September.

Gold was given additional support as a report released by the U. S. Federal Reserve on Monday showed U.S. industrial production unexpectedly fell in May as manufacturing and mining activity remained weak. industrial output slipped 0.2 percent last month after declining 0.5 percent in April, the Federal Reserve said.

Silver for July delivery added 25.8 cents, or 1.63 percent, to close at 16.083 dollars per ounce. Platinum for July delivery dropped 8.2 dollars, or 0.75 percent, to close at 1,088.60 dollars per ounce. Endite