Gold up on weaker dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday as U.S. dollar weakened after the Federal Reserve officials hinted that interest rate hikes may be delayed.

The most active gold contract for December delivery rose 8.3 dollars, or 0.68 percent, to settle at 1,230 dollars per ounce.

Gold has risen for the fifth session in the past six days.

Economic data from China also supported gold. Data showed that the Chinese economy likely grew in the third quarter at the slowest pace in more than five years; and China's imports of industrial commodities rebounded strongly in September.

However, a slide of crude oil prices to the lowest levels since 2010 limited the growth of gold somehow Monday.

Though short covering has lent some support to gold recently, market analysts believed that the rally in gold will be short lived. They predicted that gold prices may drop further as U.S. economic outlook improves.

Singapore on Monday launched 25-kilogram gold contracts, aiming to provide a regional benchmark price.

Gold holdings in SPDR Gold Trust, the world's largest gold- backed exchange-traded fund, fell from 2.64 tonnes Friday to 759. 44 tonnes, the lowest level since December 2008.

Silver for December delivery gained 4.2 cents, or 0.24 percent, to close at 17.345 dollars per ounce. Platinum for January delivery slipped 0.4 dollars, or 0.03 percent, to close at 1,261.2 dollars per ounce.