Gold is girding for its first monthly advance

Precious-Gold soared for the third day, touching its highest in two weeks and heading for the first monthly advance after falling in December and January as the dollar retreats.

Yesterday, gold shed $18.30 or 1.66% to close at $1118.95 an ounce. Gold's Price was setin London on Tuesday at $1015.25 per ounce during the PM fixing, unchanged from the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, added 3.046 tonnes to 1,106.37 metric tons on February 16.

Spot gold is traded at $1123.80 an ounce after recording a high of $1124.00 and a low of $1115.50.

Inregards to other precious metals; platinum edged up to $1551.50 from the opening at $1544.50; palladium inclined to $436.50 from $431.20; and silver remained unchanged at to $16.20.

Meanwhile, investors are determining their positions from the euro movement against majors, especially the dollar. The 16-nation currency rebounded from its lowest level in nine months versus the green currency on an improved outlook for the euro region, on hopes Greece will not need a bailout to rein in budget deficit.

The EU finance Ministers stated on Tuesday that Greece is committed to new measures to cut its deficit, if the Greek government does not show any progress in doing so till March the16th. However, the Greek Prime Minister announced that the government is already working on slashing the deficit and Greece will not recieve any help from the EU.

Consequently, the euro gained although there still are some concerns since reducing the deficit will take time and may witness some turbulences; however, some investors are saying the worst of Greece's problems has passed and the euro will not fall further. On the other hand, the dollar index slipped for the second day to 79.57 after breaching strong support at 80.07, which gave the chance to all dollar-denominated commodities to advance.

The sentiment currently is better and there is more confidence, seen by the shares' rise. European shares bounced today, following Asian shares climbing to their highest since November, after the upbeat earnings posted by large companies.