Gold climbs on USD weakness, safe haven demand

April gold futures rose by US$16.20, or 1.4%, to settle at US$1,157.50 an ounce - the highest closing level for futures prices since Oct. 28

Gold futures advanced on Thursday, as sustained weakness in the US dollar and safe haven demand for the yellow metal lifted prices to their highest level since late October.

April gold futures rose by US$16.20, or 1.4%, to settle at US$1,157.50 an ounce - the highest closing level for futures prices since Oct. 28.

The US dollar fell sharply on Wednesday following dovish comments made by New York Federal Reserve President William C. Dudley and disappointing US service sector data.

The dollar remained under pressure on Thursday after data showed a rise in first-time jobless claims.

The ICE dollar index DXY, a measure of the US currency against a basket of major global currencies, fell by 0.8% to 96.539.

Dudley on Wednesday hinted that tighter financial conditions could prompt the central bank to delay its next interest-rate hike after signaling that it could act four times this year after its first rate hike in nearly a decade in December.

Gold is also getting support from easy monetary policy of the central banks in Japan and Eurozone