Gold up as U.S. equities drop

Gold futures on the COMEX division of the New York Mercantile Exchange rose Tuesday as U.S. equities and dollar fell.

The most active gold contract for December delivery went up 5.1 dollars, or 0.42 percent, to settle at 1,212.4 dollars per ounce.

The U.S. Dollar Index dropped 0.2 percent to 85.79 Tuesday.

The International Monetary Fund (IMF) on Tuesday cut its global economic growth forecasts for this year and the next, warning of weaker economic growth in core euro zone countries, Japan and big emerging markets. This has increased gold's appeal as a safe haven for investment.

To echo the IMF forecast, Germany reported a far more-than- expected drop in industrial output in August, which is actually the biggest decline since early 2009.

Data showed gold futures' drop below 1,200 dollars an ounce had triggered off investors' renewed demand for the precious metal. The Gold Investor Index, which measures the balance of customers adding to gold holdings over those reducing them, climbed to a seven-month high of 53.4 in September from 51.7 in August.

China, a leading global gold consumer, will return to the gold market as its week-long National Day holiday comes to an end on Oct. 8.

Silver for December delivery climbed 1.5 cents, or 0.09 percent, to close at 17.24 dollars per ounce. Platinum for January delivery soared 12.7 dollars, or 1.02 percent, to close at 1,261.9 dollars per ounce.