Gold Rises as Dollar Weakens, Euro Zone Worries Persist

Gold rose Tuesday as the U.S. dollar weakened against the euro and bargain hunters moved in following two session in which the yellow lost value.

The dollar, which competes with gold among safe-haven investors, had strengthened against the euro as markets came to the conclusion that Greece will default on its national debt. The anticipated damage to the euro has been lifting the dollar, which in turn clipped demand for gold.

But on Tuesday morning the dollar weakened as European equities, led by bank stocks, rose -- albeit with a high level of volatility -- for the first time since Thursday off two-year lows.

There was a report in the Greek press on Tuesday that Greek, German and French leaders would hold a conference call on Tuesday that would offer increased political support for Athens, Reuters said.

Precious metals investors, meanwhile, decided to buy the recently discounted yellow metal in anticipation of its next uptick, something that may be supported by a seasonally strong period for physical demand of gold in India and other parts of Asia.

Gold in New York futures trading rose $11.70 to $1,825.00, a 0.66 percent gain. Gold for immediate delivery rose $18.80 to $1,824.91.

Silver in New York futures trading rose 45 cents to $40.67, a 1.1 percent gain. Silver for immediate delivery rose 58 cents to $40.68.

U.S. stocks opened mixed with the Nasdaq Composite index edging higher while the S&P 500 and the Dow Jones Industrials slipping modestly. Prices for U.S. Treasuries were slightly down.