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CHICAGO, March 21 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as the U.S. dollar and U.S. equities weakened.
The most active gold contract for April delivery rose 12.5 U.S. dollars, or 1.01 percent, to settle at 1,246.50 dollars per ounce.
The U.S. dollar fell sharply on Tuesday as the euro rebounded in the wake of the French presidential debate.
The U.S. Dollar Index, a measure of the dollar against a basket of other major currencies, fell by 0.68 percent to 99.68 as of 1700 GMT.
Gold and the dollar typically move in opposite directions, which means if the dollar drops, gold futures will go up.
Analysts believe that centrist candidate Emmanuel Macron performed well in the debate and this increased the value of the euro relative to the U.S. dollar as investors believe far-rightist Marine Le Pen is less likely to win.
Investors have been cautiously weighing the potential for the election of French presidential candidate Marine Le Pen.
She is generally seen by the markets as a potentially destabilizing factor as she has pledged to hold a referendum on France's future in the European Union, which has led to some investors' fear of a repeat of Brexit.
Gold was given extensive support as the U.S. Dow Jones Industrial Average fell by 187 points, or 0.9 percent as of 1705 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.
Silver for May delivery rose 14.5 cents, or 1.01 percent, to close at 17.583 dollars per ounce. Platinum for April delivery was down 1 dollar, or 0.1 percent, to close at 971.4 dollars per ounce.
Traders are now waiting for the release of several economic reports. The existing home sales report is due out on Wednesday, weekly jobless claims and new home sales on Thursday, durable goods orders and PMI composite flash on Friday. Enditem
