CHICAGO, Oct. 19, 2009 (Xinhua News Agency) -- Gold futures on the COMEX Division of the New York Mercantile Exchange closed higher on Monday as dollar continued to drop, boosting gold's appeal for hedge. Silver and platinum both gained.

The most active gold contract for December delivery rose 6.60 U. S. dollars, or 0.6 percent, to finish at 1,058.10 U.S. dollars an ounce.

The weak dollar failed to see any sign of recovery on Monday. The dollar index, a gauge measuring the greenback's value against a basket of major currencies, dropped 0.295 to 75.475 shortly after the gold floor trading closed, dipping as low as 75.440 earlier in the session.

CME Group Inc., the largest and most diverse derivatives exchange based in Chicago, will allow gold to be used as collateral to back trades on its exchange as an alternative to debt or equities. Gold would be the first commodity to be used in margin payments. This also spurred the precious metal's appeal.

December silver was up 20.5 cents to 17.625 dollars per ounce. January platinum rose 15.70 dollars to 1,364.20 dollars an ounce.