Gold futures edge higher on dollar weakness

NEW YORK (MarketWatch) -- Gold futures traded higher Monday, as weakness in the U.S. dollar underpinned demand for the precious metal.
Gold for December delivery gained $1.10 at $825.80 an ounce on the New York Mercantile Exchange. On Friday, gold futures finished with strong gains, rallying $26 to $824.70 an ounce.
Gold is trading higher Monday "as dollar weakness and high oil prices again prove supporting for the precious metals," said James Moore, an analyst at TheBullionDesk.com, in a research note.
"Given the oil/dollar scenario and the likelihood for further credit related fall-out, the outlook for gold still remains bullish, with $850 still the clear target before year-end long liquidation begins to be seen from around mid-December," Moore said.
On the currency markets, the dollar didn't stray far from recent ranges, drifting lower against most major currencies except for Japan's, as fears about the continuing impact of the credit crisis offset positive economic signals. The dollar index, which tracks the performance of the greenback against other major currencies, edged down 0.1% at 74.965.
Crude-oil futures fell 93 cents at $97.25 a barrel on Nymex amid profit-taking. On Friday, crude rallied to a new closing high of $97.45. See Futures Movers.
Also on Nymex, December silver gained 2 cents at $14.76 an ounce, while January platinum dropped $2.60 at $1,477.90 an ounce and December palladium fell $4.50 at $357 an ounce,
December copper rose 1.50 cents at $3.0060 a pound.