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

Gold futures on the COMEX division of the New York Mercantile Exchange rallied on Monday as the U.S. dollar weakened.

The most active gold contract for April delivery rose 11.6 U.S. dollars, or 1.04 percent, to settle at 1,128.00 dollars per ounce.

The U.S. Dollar Index, a gauge of the greenback against a basket of major currencies, fell by 0.52 to 99.13 as of 1745 GMT. Gold and the dollar typically move in opposite directions.

The precious metal was given further support as a report released by the Institute for Supply Management showed its key manufacturing index remaining at a 48.2 level, which analysts say is not only the fourth reading below 50 in a row, but is also the worst level since 2009.

Gold was prevented from rising further as a report released by the U.S. Department of Commerce showed personal income increased by 0.3 percent in December, and the personal savings rate rose to 5.5 percent, which analysts note is the strongest reading since December 2012.

Gold also got support as the U.S. Dow Jones Industrial Average fell. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.

Silver for March delivery rose 10 cents, or 0.70 percent, to close at 14.343 dollars per ounce. Platinum for April delivery fell 4.2 dollars, or 0.48 percent, to close at 870.10 dollars per ounce. Enditem