By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) -- Gold futures rose above $1,340 an ounce on Thursday, getting a boost from weakness in the U.S. dollar.
Gold for December delivery (GCZ3) gained $11, or 0.8%, to $1,345 an ounce in electronic trading on the New York Mercantile Exchange.
The contract fell $8.60, or 0.6%, to settle at $1,334 an ounce on Wednesday.
"A still weak U.S. dollar -- the U.S. currency has weakened against the euro to exceed the $1.38 mark for the first time in almost two years -- is one major reason why the gold price has been able to gain to around $1,340 per troy ounce this morning," said analysts at Commerzbank AG.
Dollar weakness tends to boost dollar-denominated commodities such as gold, because it makes them cheaper for holders of other currencies. The ICE dollar index (DXY), which gauges the greenback's performance against six major rivals, fell to 79.158 on Thursday from 79.270 late Wednesday. The euro (EURUSD) climbed 0.2% to $1.3808.
In other metals trading Thursday, December silver (SIZ3) rose 15 cents, or 0.7%, to $22.77 an ounce.
-Polya Lesova; 415-439-6400; AskNewswires@dowjones.com
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10-24-13 0821ETCopyright (c) 2013 Dow Jones & Company, Inc.