Gold up as India relaxes import restrictions

Gold futures on the COMEX division of the New York Mercantile Exchange rose Thursday after India eases on its import restrictions for gold.

The most active gold contract for June rose 6.9 U.S. dollars, or 0.54 percent, to settle at 1,295 dollars per ounce.

India's central bank said Thursday that it would allow private trading companies to import gold. Traders estimate that the easing of import restrictions by India may result in additional gold demand of around 5 tonnes a week.

A rise in China's manufacturing industry may also have boosted gold as the HSBC manufacturing purchasing managers' index came in at 49.7 in May, up sharply from the previous month's 48.1. Market analysts believe this data may imply increased demand for gold in China.

Further increasing the demand for gold, U.S. Department of Labor said the jobless claims in the week ended May 17 rose by 28, 000 to 326,000. However, the boost of this report to gold was somehow mitigated by an upbeat report on U.S. manufacturing. Financial data firm Markit said U.S. manufacturing purchasing managers' index rose to 56.2 in May compared to 55.4 in April.

Intensified turmoil in Ukraine and a coup in Thailand also boosted gold's safe haven appeal.

Silver for July delivery gained 18.2 cents, or 0.94 percent, to close at 19.52 dollars per ounce. Platinum for July delivery climbed 18.2 dollars, or 1.23 percent, to close at 1,493.1 dollars per ounce.