Gold finishes up 1% as US dollar slides

Gold prices rallied for the first time in three days at settlement today, March 28, buoyed by a weaker US dollar after the release of economic data.

Bullion prices trimmed today losses recorded in the past two days as relative calm returned to markets as turmoil in the world banking system abated for the time being.

Today's data revealed that the US trade deficit in goods widened modestly by 0.6% in February, contrary to market expectations for a decline.

In terms of trading, gold for April delivery surged 1%, or $19.70, to end at $1,973.50 an ounce.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, ticked down 0.4% to 102.43 points at 8:35 pm Makkah time.