Gold prices rise as US dollar falls

Gold prices rose on Tuesday, with the US dollar index falling to its lowest level in two weeks, and in anticipation of the monthly jobs report in the United States later in the week.

President and Chief Executive Officer (CEO) of Federal Reserve Bank of Cleveland, Loretta Mester, warned that despite the strong recovery of the US economy, the recent inflation readings are not enough to achieve the target.

Gold futures contracts for December delivery rose 0.5% to reach $1,820.40 per ounce at 09:30am Makkah time. Spot price for the yellow metal gained 0.5% to reach $1,818.53 per ounce.

Elsewhere, silver futures for December delivery rose 0.9% to reach $24.22 an ounce, spot price for platinum delivery gained 0.5% to reach $1,014.95, and palladium increased 0.6% to reach $2,495 per ounce.

The dollar index - which measures the performance of the US currency against a basket of six currencies – fell 0.1% to 92.463 points.