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1st LD Writethru: Gold up on G20 meeting, despite stronger U.S. dollar

Xinhua, March 1, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as the G20 meeting ended with no tangible plan to boost growth, giving support to the precious metal.

The most active gold contract for April delivery rose 14 U.S. dollars, or 1.15 percent, to settle at 1,234.40 dollars per ounce.

Traders were watching closely the G20 meeting, held over the weekend, for signs of strength or weakness in the global economy. Since there was no concrete plan agreed on, traders are moving their assets to gold as a safe haven, analysts said.

European equities also fell. The German DAX index dropped 92 points, or nearly one percent, and the FTSE 100 shed 10 points, or 0.18 percent. When equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.

The retreat in euro equities and jitters over the global economic situation have offset the pressure on the precious metal from gains in the U.S. dollar index, which rose by 0.09 to 98.25 as of 17:50 GMT.

The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions.

Traders also awaited the release of economic data later this week. The Institute for Supply Management manufacturing index is due to be released on Tuesday, and the big jobs report will be out on Friday, along with the international trade report.

Meanwhile, silver for May delivery added 20.4 cents, or 1.39 percent, to close at 14.918 dollars per ounce. Platinum for April delivery gained 19.2, or 2.1 percent, to close at 934.3 dollars per ounce. Endit