Gold up on weaker U.S. equities

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as U.S. equities weakened.

The most active gold contract for August delivery rose 19.70 U.S. dollars, or 1.47 percent, to settle at 1,358.70 dollars per ounce.

The precious metal was given extensive support as the U.S. Dow Jones Industrial Average fell by 146 points, or 0.82 percent as of 18:50 GMT. 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.

A report released by the U.S. Department of Commerce on Tuesday gave additional support to gold as it showed factory orders falling by 1 percent during the month of May, displaying weakness in the U.S. manufacturing sector and putting pressure on U.S. equities.

Traders are waiting for the release of the international trade report and the Federal Open Market Committee minutes on Wednesday, along with the weekly jobless claims report on Thursday, and the big jobs report, also known as the employment situation report on Friday.

Silver for September delivery added 31.90 cents, or 1.63 percent, to close at 19.907 dollars per ounce. Platinum for October delivery advanced 19.80 dollars, or 1.87 percent, to close at 1,076.90 dollars per ounce. Endit