Gold, other metals climb higher as greenback falls; Energy futures also rise in quiet trading

Weaker dollar drives gold higher for 2nd day

NEW YORK — Gold prices have inched higher for a second day in a row, boosted by a weaker dollar.

Gold for February delivery is settling up $10.80 at $1,104.80 an ounce in quiet, holiday-shortened trading on the New York Mercantile Exchange.

The modest gain comes as the dollar dipped against other currencies. Gold, which is considered a hedge against a weak greenback, tends to rise when the dollar falls.

Gold had been on a record-setting climb over the past several months as the Federal Reserve’s low-interest rate policy sent the dollar tumbling.

The dollar has steadied since early December, however, causing gold to drop about $123, or 10 percent, from a record high of $1,227.50 on Dec. 3.

Other metals are sharply higher. Oil prices have settled at $78.05 a barrel.