1st LD Writethru: Gold up on weaker U.S. equities

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

The most active gold contract for February delivery increased 9 U.S. dollars, or 0.82 percent, to settle at 1,105.30 dollars per ounce.

Gold was given support as the U.S. Dow Jones Industrial Average fell, led by weakness in the energy sector as the price of oil dropped. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The precious metal was given further support as the U.S. Dollar Index fell on Monday. 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.

Traders also exited gold positions ahead of the U.S. Federal Open Market Committee January meeting scheduled to begin Wednesday.

Silver for March delivery rose 19.7 cents, or 1.40 percent, to close at 14.254 dollars per ounce. Platinum for April delivery added 29.9 dollars, or 3.60 percent, to close at 861.50 dollars per ounce. Enditem