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1st LD Writethru: Gold up on technical trading, weak dollar

Xinhua, July 24, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose Thursday as technical trading and a weaker dollar caused a slight bounce in the precious metal.

The most active gold contract for August delivery rose 2.6 U.S. dollars, or 0.24 percent, to settle at 1,094.10 dollars per ounce.

Despite the slight increase caused by technical trading, gold was prevented from bouncing higher as a report by the U.S. Department of Labor showed jobless claims hitting a 42-year-low. Initial jobless claims fell by 26,000 during the July 18 week to 255,000. This was unexpected, and analysts note that it may affect the July jobs report.

Gold was lent some support as the U.S. Dollar Index fell by 0. 39 percent to 97.07 as of 1808 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 if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors holding other currencies.

The precious metal has been kept low by expectations for an increase in the U.S. Federal Reserve's interest rate. An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest. There has not been an increase in the Fed's interest rate since June 2006, before the beginning of the American financial crisis.

Silver for September delivery fell 2.9 cents, or 0.20 percent, to close at 14.701 dollars per ounce. Platinum for October delivery added 1.2 dollars, or 0.12 percent, to close at 981.10 dollars per ounce. Endite