Gold has its best day in eight months

GOLD has its best day since late January, rallying more than two per cent as the US dollar weakens, before closing 2.00 per cent higher.

SPOT gold has rallied more than two per cent for the biggest one-day gain in almost eight months as a weak US dollar sparked short covering while platinum recovered from a four-day rout even as automotive demand woes lingered.

IN its best daily performance since late January, gold touched a one-month high of $US1,156 per ounce as the US dollar eased after data showed US durable goods fell 2.00 per cent in August.