Gold climbs above $1100 as the dollar slips
Precious-Gold advanced on Tuesday as the dollar stopped its rally, which increased the appeal of the shiny metal as an alternative investment.
Yesterday, gold shed $7.10 or 0.65% to close at $1100.85 an ounce. Gold's Price was setin London on Monday at $1098.25 per ounce during the PM fixing, declining from $1099.250 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, stood at 1,106.37 metric tons on February 15.
Spot gold is traded at $1114.50 an ounce after recording a high of $1116.85 and a low of $1097.95. Gold may gain further after breaching strong resistance at $1100 level, especially with the reduced pressure from the dollar which slipped against a basket of major currencies to 80.05 from the day's opening 80.36, seen on the dollar index on the daily charts.
On the other hand, the 16-narion currency rebounded from its lowest level in nine months versus the green currency, following the EU finance Ministers meeting yesterday; where EU officials decided to impose more measures on Greece to move inline with the EU Commission's recommendations. The support for Greece provided hopes and enhanced demand on the euro, while European leaders will meet for the second day today in Brussels to put measures to bailout Greece.
European shares advanced today, tracking gains in Asian and U.S. after EU leaders said they will provide support to Greece to tackle its budget deficit. Crude oil also advanced, reaching a high above $75 a barrel and therefore giving another impetus to the yellow metal.
In regards to other precious metals; platinum edged up to $1532.00 from the opening at $1525.50; palladium inclined to $426.50 from $425.20; and silver soared to $15.76 from $15.68.