Gold rises as dollar takes a dive

London: Gold rose from a two-month low in New York and London as the dollar weakened for the first time in six days, increasing the metal's appeal as an alternative investment.

The US Dollar Index, a six-currency measure of the greenback's value, declined as much as 0.9 per cent on Thursday.

Gold futures, which typically move inversely to the currency, dropped as low as $904.80 (Dh3,320) an ounce on Wednesday, the lowest since May 6.

Gold "has traded higher this morning on a softer dollar," James Moore, an analyst at TheBullionDesk.com in London, said in a note.

"While gold is at risk to further pressure short-term, we expect the metal to find more substantial support below $900 an ounce."

Gold futures for August delivery gained $4.90, or 0.5 per cent, to $914.20 an ounce on the New York Mercantile Exchange's Comex division in New York.