Gold futures on the COMEX Division of the New York Mercantile Exchange rose for the first session in three on Monday as dollar declined, adding to the appeal of the precious metal. Silver and platinum rose, too.
Gold price for June delivery gained 14 U.S. dollars, or 1.6 percent, to settle at 902.20 dollars an ounce.
Analysts indicated that the weaker dollar was the main factor underpinning gold. The dollar went down sharply during gold's floor trading time with the rate against euro sliding to 1.3415 dollars earlier in the session, the lowest level in 4 weeks. The dollar index was down 0.583 points to 83.959 shortly after gold floor trading closed. Dollar's depreciation usually is considered to increase gold's safety demand.
Economic data released on Monday showed U.S. March construction spending rose for the first time in six months and April pending home sales rose 3.2 percent, up 1.1 percent compared with a year earlier, adding signs which indicate the U.S. economic recovery ison the way. Better-than-expected prospects of economy made investors believe that gold's real demand is going to rise.
Stock market's big rally also provided support to the precious metal as the Dow Jones industrials jumped more than 2 percent in afternoon trading.
July silver finished at 13.113 dollars per ounce, up 61.3 cents. July platinum rose 25.60 dollars to 1,122 dollars per ounce.
