BW: Gold bounces to 3-day high as dollar weakens on GDP report
CHICAGO, Oct. 29 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange rallied to a 3-day high on Thursday as a dropping dollar refueled gold's demand of hedge. Silver and platinum both rose.
The most active gold contract for December delivery soared 16.60 U.S. dollars, or 1.6 percent, to finish at the highest level of 1,047.10 dollars an ounce in recent 3 sessions. After a 4 session rally, dollar saw its first drop in recent 5 sessions on Thursday, dragged by a higher-than-expected GDP report.
The commerce Department said the U.S. GDP grew unexpectedly by 3.5 percent on an annual basis in the third quarter, ending a streak of declines over four quarters. This made investors more interested in high risk currencies for more profits.
By the end of gold floor trading time, the dollar index, a gauge measuring the greenback's value against a basket of major currencies, dropped 0.52 to 76.065, raising gold's demand of hedge and haven.
Surging energy prices also helped the precious metal end higher.Pushed by dollar's sharp declines, the benchmark crude contract for December delivery in New York rose 2.67 dollars and returned above 80 dollars a barrel when gold closed.
December silver was up 41.5 cents to 16.655 dollars per ounce. January platinum gained 31.30 dollars to 1338.20 dollars an ounce.
