CHICAGO, Feb 18: Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday on a weaker US dollar.
The most active gold contract for April delivery rose 3.2 US dollars, or 0.26 per cent, to settle at 1,211.40 dollars per ounce.
Gold was given support as the US dollar index, a measure of the greenback against a basket of major currencies, fell by 0.09 per cent to 96.81 as of 1745 GMT. Gold and the dollar typically move in opposite directions.
US equities continued to rebound, weighing on the precious metal. The US Dow Jones Industrial Average rose by 225 points, or 1.39 per cent, as of 1745 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 US equities post gains.
Gold was prevented from rising higher as a report released by the US Department of Labor on Wednesday showed the producer price index rose by 0.1 per cent, and that a separate measure that excludes food and gas edged up 0.4 per cent. Both figures were better than expected.
A report released by the US Department of Commerce on Wednesday showed industrial production increasing by 0.9 per cent during the month of January, a figure which was better than expected. Analysts also noted extensive strength in the auto manufacturing sector which also posted better than expected gains.
Traders are also eagerly waiting for the release of the Fed meeting minutes due out after the market's close on Wednesday.
Silver for March delivery added 4.3 cents, or 0.28 per cent, to close at 15.377 dollars per ounce. Platinum for April delivery rose 12.4 dollars, or 1.32 per cent, to close at 949.70 dollars per ounce. ?Agencies