Gold edges up near three-week high as the dollar drops

Gold edged up on Thursday trading, heading for the second weekly advance, as the dollar slipped for the third consecutive session, thereby increasing the appeal of the shiny metal as an alternative investment.

The previous session, gold shed $0.30 or 0.02% after closing at $1525.05 an ounce, while gold price was setin London at $1526.00 per ounce declining from $1527.00 during the AM fixing.

Spot gold is traded at $1528.00 an ounce after reaching a high of $1530.92 and a low of $1524.35.

Gold is taking advantage of the dollar's halt in its rally which also helped other dollar-denominated commodities, where oil rose to $101.50 from the day's starting level of $101.17.

Among other precious metals, sliver plummeted to $38.20 from the day's opening of $38.45, palladium ticked down to $747.00 from $747.80 and platinum soared to 1785.00 from $1783.00, as of 07:25 GMT.

Moreover, gold is still benefiting from the jittery situation in the euro area which is enhancing demand on the metal as a safe haven.

Jean-Claude Junker, who heads the euro-area finance ministers, revealed that he rejects the idea of full restructuring for Greek debt, yet he stressed on the importance of adopting strong reforms clarifying that Greece will get help if it met requests from all euro-zone members. He added that probably by next week there will be approval for new measures to help Greece.

The announcement eased some of the concerns, giving uplift to the euro at the expense of the dollar that was affected by grim US durable goods report yesterday which showed that durable goods dropped 3.6% in April compared with the prior 2.5% advance, where the reading excluding transportation slipped 1.5% from 1.3% rise a month earlier.

Today, eyes will be on GDP annualized for the first quarter and initial jobless claims for the week ending May 2.