Gold rises on weaker dollar

CHICAGO, Nov. 19 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange closed higher Monday on weaker dollar as a result of possible fiscal cliff resolution.

The most active gold contract for December delivery rose 19.7 dollars, or 1.15 percent, to settle at 1,734.4 dollars per ounce.

This is the highest level for the precious metal in a month.

On Sunday, President Obama and House Minority Leader Nancy Pelosi expressed optimism that a deal can be reached to avert the fiscal cliff. This has dampened U.S. dollar and supported gold.

Intensified violence between Israelis and Palestinians in the Gaza Strip also lends a robust support to gold.

Gold investors have also turned their eyes to Japan, where more relaxed monetary policies are likely to be introduced, which is positive for gold.

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