Gold up on weaker U.S. dollar, U.S. election

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as the U.S. dollar weakened and traders began to turn their attention to the U.S. presidential election.

The most active gold contract for December delivery rose 2.4 U.S. dollars, or 0.18 percent, to settle at 1,344.10 dollars per ounce.

Gold was given support as analysts believe that traders have begun to look at the impact of the U.S. presidential election on markets as the country prepares to watch the first of three U.S. presidential debates on Monday evening.

The precious metal was given further support as the U.S. Dow Jones Industrial Average fell by 146 points, or 0.8 percent as of 1800 GMT. Analysts note 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 U.S. Dollar Index fell by 0.2 percent to 95.25 as of 1800 GMT. 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.

A report released by the U.S. Census Department showed new home sales within expectations at 609,000 during the month of August. Analysts note that although this was within the consensus range, prices are decreasing which has given additional support to the precious metal.

Traders are looking to the week ahead for several Fed speeches on Wednesday and Thursday, as well as the durable goods orders on Wednesday, gross domestic product, international trade in goods, and weekly jobless claims on Thursday, along with the personal income and outlays report on Friday.

Silver for December delivery fell 21.4 cents, or 1.08 percent, to close at 19.596 dollars per ounce. Platinum for October delivery dropped 14.1 dollars, or 1.33 percent, to close at 1,042.90 dollars per ounce. Enditem