Gold rises on short covering

Gold futures on the COMEX division of the New York Mercantile Exchange on Monday went up on short covering, snapping a seven-session losing streak. The most active gold contract for June delivery rose 19.4 dollars, or 1.42 percent, to settle at 1,384.1 dollars per ounce. The drop in the U.S. stock markets and the dollar's going weak contributed to gold's rise Monday. Gold prices dropped by 109 dollars in the past seven sessions, and the last time when prices for the precious metal futures fell for eight consecutive sessions happened in 2009. Market analysts cited big rallies in the stock markets in the U. S. and Japan, a stronger dollar and low-inflation expectations worldwide for the current bearish gold market. Meanwhile, the U.S. Federal Reserve Chairman Ben Bernanke will testify about the central bank's economic outlook Wednesday and the Federal Open Market Committee, the U.S. central bank's policy-setting arm, will release minutes of its most recent policy meeting. It is expected that Bernanke may soon put an end to the Fed's present monetary stimulus measure. Silver for July delivery gained 23 cents, or 1.03 percent, to close at 22.582 dollars per ounce. Platinum for July delivery climbed 16.6 dollars, or 1.13 percent, to close at 1,484.6 dollars per ounce.