Gold Further Hikes on Poor Economic Outlook, Weaker Dollar

CHICAGO, Aug. 17 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange climbed for the third session in a row Wednesday, supported by ongoing concerns about the global economy as well as a weaker dollar.

The most active gold contract for December delivery jumped 8.8 dollars, or 0.5 percent, to 1,793.8 dollars per ounce.

A trader mentioned that gold mainly relied on the support from the ongoing concerns about the global economy, as the outcome of the Merkel-Sarkozy meeting did little to boost confidence in the region's economy.

Meanwhile, the break in U.S. dollar helped enhance the appeal of dollar-denominated gold futures to buyers holding other currencies by making the contracts seem cheaper, while the rally in stocks market lured some investors away.

"The Gold is still very top heavy as we continue to trade at these uncharted levels. The underlying continues to be a vast demand to own physical bullion," said Mike Daly, gold specialist with PFGbest here in Chicago.

"As we get closer to September and the start of India's Wedding and Festival season I expect more buying from the jewelers of India in order to meet the insatiable demand," Daly added.

Meanwhile, silver for September delivery jumped 53.2 cents, or 1.3 percent, to 40.351 dollars per ounce.