Gold rises as dollar slips

Gold futures on the COMEX Division of the New York Mercantile Exchange closed higher on Thursday as the U.S. dollar slipped against the euro and the pound. Sliver and platinum both gained.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The most active gold contract for April delivery rose 0.1 dollars, or 0.01 percent, to finish at 1,108.2 dollars per ounce.

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />U.S. trade deficit unexpectedly narrowed in January as imports and exports both declined, the U.S Commerce Department said on Thursday.

Meanwhile, the Labor Department said on Thursday that slightly fewer U.S. workers filed first-time claims for jobless benefits last week, hinting at a slow labor market recovery.

According to the National Bureau of Statistics of China, China' s consumer price index (CPI), a main gauge of inflation, rose 2.7 percent in February over a year earlier, 1.2 percent higher than in January.

China's CPI had risen for four straight months, which triggered inflation expectations and concerns of overheating in the economy. Some analyst speculated that China may seek to damp economic growth, which may slow global recovery.

The tenuous revival of U.S. trade and labor market and the fear of China's inflation have diminished investors' demand of risky assets and increased gold's appeal as a safe-haven asset.

May silver rose 14.2 cents to 17.16 dollars per ounce. April platinum gained 22.5 dollars to 1,612.7 dollars an ounce.