CHICAGO, Aug. 25 (Xinhua)-- Gold futures on the COMEX division of the New York Mercantile Exchange settled Friday at their highest level since early June, buoyed by drop in the dollar to a three-week low.
The most active gold contract for December delivery went up 5.9 dollars, or 0.46 percent, to settle at 1,297.9 dollars per ounce.
The greenback, as measured by the U.S. dollar Index, traded 0.67 percent lower as of 1930 GMT, near its weakest level of 2017. A weaker dollar tends to support dollar-denominated gold prices, while losses in the stock market can lift investment demand for the yellow metal.
U.S. short-term interest rate futures rose slightly, reflecting reduced expectations that the Fed will raise interest rates further this year, after Yellen skipped mention of it when speaking at economic policy symposium of global central bankers in Jackson Hole of Wyoming. NOW investors awaited clues from European Central Bank President Mario Draghi.
Gold is highly sensitive to rising interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the greenback.
As for other precious metals, silver for September delivery added 8.6 cents, or 0.51 percent, to close at 17.049 dollars per ounce. Platinum for October fell 3.5 dollars, or 0.36 percent, to settle at 979.1 dollars per ounce. Enditem
