1st LD Writethru: Gold up on weak U.S. dollar, equities

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday on a weaker U.S. dollar and lower equities.

The most active gold contract for December delivery rose 6.4 U.S. dollars, or 0.55 percent, to settle at 1,159.60 dollars per ounce.

For the week,gold futures climber 4.21 percent, their largest weekly gain since the week ended Jan. 16 this year.

Gold was given support as U.S. equities fell and the U.S. Dollar Index fell also. 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.

The weak equities and weaker dollar are influenced by the U.S. central bank's strong hints that the Federal Reserve interest rate will not be raised in September.

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.

Additionally, a report released by Markit on Friday showed that monthly growth in Markit's manufacturing PMI sample is at its slowest since October 2013, at a much lower-than-expected 52.9 in the flash for August.

Silver for September delivery fell 21.6 cents,or 1.39 percent, to close at 15.301 dollars per ounce. Platinum for October delivery dropped 7.8 dollars, or 0.75 percent, to close at 1,027.10 dollars per ounce. Endit