Gold Increases Due to Weak Dollar and Economic Data from Japan

Gold prices increased as the weak U.S. dollar and the poor economic data from Asia aided in reversing early losses. Gold for December delivery closed by 0.3 percent with $1,347.50 per troy ounce on the Comex division of the New York Mercantile Exchange.

The data which has shown that Japan's economy has stalled during the second quarter by expanding by an annualized 0.2 percent also supported the precious metal according to ETF Securities' commodities strategist Nitesh Shah. Gold is seen as a haven from currency weakness and inflation and so loose monetary policy will likely increase the demand for the precious metal.

Gold had momentarily increased above $1,360 on Friday following the reporting of the weak U.S. retail sales figures, and had settled lower.

News are provided by InstaForex