Gold climbs for fifth weekly gains on weaker U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as the U.S. dollar weakened, heading for its fifth weekly gains, while the other precious metals also advanced.

The most active gold contract for August delivery added 18.40 U.S. dollars, or 1.39 percent, to settle at 1,339 dollars per ounce.

For the week, gold advanced some 1.26 percent, marking its fifth straight weekly gains on Friday.

The precious metal was given support as the U.S. Dollar Index fell on Friday before the long weekend of U.S. Independence holiday. 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.

However Gold was prevented from rising further as a report released by the U.S.-based Institute for Supply Management shows its manufacturing index increasing to a reading of 53.2 during the month of June. Analysts note that this is a sign of strength as the reading came in above expectations.

Strength in U.S. equities encouraged markets on Friday, dampening demand for gold. The U.S. Dow Jones Industrial Average rose by 42 points, or 0.23 percent as of 17:10 GMT. Earlier in the week there was a rush to the precious metal as a safe haven after the United Kingdom voted to leave the European Union.

The referendum has been dubbed the "Brexit" by investors and is largely seen as a highly destabilizing move. Analysts note that the Brexit has caused volatility in the market, driving investors to gold as a safe haven, but that was dampened today as the market rose.

Silver for September delivery gained 96.50 cents, or 5.18 percent, to close at 19.588 dollars per ounce. Platinum for October delivery was higher of 32.80 dollars, or 3.20 percent, to close at 1,057.10 dollars per ounce. Endit