Gold falls as dollar recovers from 14-month low

Gold futures on the COMEX Division of the New York Mercantile Exchange closed lower on Thursday as dollar bounced from the 14-month low. Silver and platinum both dropped.

The most active gold contract for December delivery dropped 5.90 U.S. dollars, or 0.6 percent, to finish at 1,058.60 U.S. dollars an ounce.

Dollar saw a slight recovery on Thursday as investors worried that China could begin to withdraw its massive stimulus in view of an 8.9 percent economy increase in the third quarter in order to control the potential inflation. This refueled dollar's appeal of safe-haven amid concerns of global economy recovery.

By the end of gold floor trading time, the dollar index, a gauge measuring the greenback's value against a basket of major currencies, rose to 75.375 from the 14-month low of 75.085 on Wednesday.

On the job market, the Labor Department said workers filing for unemployment benefits for the first time rose more than expected last week. New unemployment benefits claims rose to 531,000 last week from 520,000 the previous week, higher than economists' expectations.

December silver was down 28 cents to 17.545 dollars per ounce. January platinum lost 4.50 dollars to 1369.90 dollars an ounce.

Source: Xinhua