Investing.com – Gold futures extended sharp gains on Monday, climbing to a four-day high as renewed optimism over a solution to the euro zone’s debt crisis saw the U.S. dollar come under broad selling pressure, boosting the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,666.05 a troy ounce during U.S. morning trade, rallying 1.85%.
It earlier rose by as much as 2.12% to trade at USD1,673.05 a troy ounce, the highest price since October 4.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said Sunday in Berlin that they will present a "comprehensive" package of new measures to tackle the region’s debt crisis, ahead of a G20 summit early next month.
Also boosting sentiment, Greek Finance Minister Evangelos Venizelos said earlier that officials from the International Monetary Fund, European Commission and European Central Bank, were set to conclude talks with Greek officials and release a statement later Monday or Tuesday.
Greece needs to receive its next tranche of aid by mid-November in order to avert a sovereign debt default.
The euro rallied more than 2% against the greenback on the news, while the dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, was down 1.58% to trade at 77.83, the lowest since September 21.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Swiss lender UBS said in a report earlier that, “"While a detailed plan was lacking, we view any progress on bank recapitalization as a positive for gold."
"Typically, liquidity concerns and funding issues are not gold's friends," the report added.
Elsewhere on the Comex, silver for December delivery rallied 3.35% to trade at USD32.03 a troy ounce, while copper for December delivery surged 2.99% to trade at USD3.372 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,666.05 a troy ounce during U.S. morning trade, rallying 1.85%.
It earlier rose by as much as 2.12% to trade at USD1,673.05 a troy ounce, the highest price since October 4.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said Sunday in Berlin that they will present a "comprehensive" package of new measures to tackle the region’s debt crisis, ahead of a G20 summit early next month.
Also boosting sentiment, Greek Finance Minister Evangelos Venizelos said earlier that officials from the International Monetary Fund, European Commission and European Central Bank, were set to conclude talks with Greek officials and release a statement later Monday or Tuesday.
Greece needs to receive its next tranche of aid by mid-November in order to avert a sovereign debt default.
The euro rallied more than 2% against the greenback on the news, while the dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, was down 1.58% to trade at 77.83, the lowest since September 21.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Swiss lender UBS said in a report earlier that, “"While a detailed plan was lacking, we view any progress on bank recapitalization as a positive for gold."
"Typically, liquidity concerns and funding issues are not gold's friends," the report added.
Elsewhere on the Comex, silver for December delivery rallied 3.35% to trade at USD32.03 a troy ounce, while copper for December delivery surged 2.99% to trade at USD3.372 a pound.