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Gold Edges Higher as Rebounding Equities Curb Its Rise

Gold futures on the COMEX division of the New York Mercantile Exchange settled slightly higher on Thursday after equities plunged in the previous session.

The most active gold contract for December delivery went up 1.30 dollars, or 0.11 percent, to close at 1232.40 dollars per ounce.

But the rise of gold was limited as the stock markets started to rebound on Thursday on bargain buying and some upbeat earnings reports.

The Dow Jones Industrial Average went up 335.87 points, or 1.37 percent as of 1729 GMT. The S&P 500 and Nasdaq also posted sharp gains, after big losses the previous day.

The rally of equities pressured gold, a safe-haven asset, curbing its rise.

Additional pressure came from the dollar. The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.32 percent to 96.67 as of 1718 GMT.

Gold and the dollar move in opposite directions. When the dollar goes up, gold futures usually fall as gold, priced in the dollar, becomes expensive for investors using other currencies.

As for other precious metals, silver for December delivery went down 4.6 cents, or 0.31 percent, to close at 14.63 dollars per ounce. Platinum for January 2019 delivery was down 3.9 dollars, or 0.47 percent, to settle at 831.50 dollars per ounce.

(www.chinaview.cn 2018-10-26)