Gold gains as dollar declines on improved Greece's debt crisis

Gold futures on the COMEX Division of the New York Mercantile Exchange closed higher on Tuesday as dollar softened because investors' risk appetite increased amid expectations of resolving Greece's debt crisis. Silver and platinum both rose.

The most active gold contract for April delivery climbed 11 U.S. dollars, or 1 percent, to finish at 1,077.20 dollars.

It was reported that European Union leaders will issue a statement on Greece's debt crisis during a meeting on Thursday. The news that European Central Bank President Jean-Claude Trichet has shortened his travel plans to attend an EU summit meeting on Thursday, further fueled investors' confidence that EU will move strongly to address the troubles in Greece.

Dragged by scarce of safe-haven buying, the dollar index, a gauge measuring the greenback's value against six major currencies, dropped 0.525 to 79.915 by the end of gold floor trading time, hitting a 3-day low of 79.65 on Tuesday noon. Investors' appetite for gold against dollar's devaluation was much strengthened.

March silver was up 35 cents to 15.435 dollars per ounce. April platinum rose 21.40 dollars to 1,502.40 dollars an ounce.

Source:Xinhua