Gold futures extended gains for a fifth straight day to end at a three-month high Tuesday, as the dollar weakened while the euro strengthened on optimism over the eurozone debt problem with expectations that the European Central Bank would step up efforts to prop-up the weaker economies of the single currency bloc. Investor hopes also rested on news reports that China would announce fresh monetary stimulus measures shortly.
Gold for December delivery, the most actively traded contract, gained $19.90 or 1.2 percent to close at $1,642.90 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.
Gold for December delivery traded at an intraday high of $1,643.60 and a low of $1,620.80 an ounce.
Yesterday, gold extended gains for a fourth session with the dollar down against most major currencies, while trading marginally higher against the euro.
The U.S. dollar slipped back near a two-week low versus the euro and the Swiss franc, while lingering around a three-week low against the sterling. The buck was leveling off from its 5-week high versus the yen.
The euro traded lower against the dollar at $1.2478 on Tuesday, as compared to $1.2345 late Monday in North America. The euro scaled a high of $1.2487 intraday and a low of $1.2344.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.84 on Tuesday, down from 82.45 in North American trade late Monday. The dollar scaled a high of 82.47 intraday and a low of 81.79.
In economic news, the U.K. public sector net borrowing, excluding the temporary effects of financial interventions, increased in July, data from the Office for National Statistics showed. Net borrowing was GBP 0.6 billion in July, which was GBP 3.4 billion higher than in July last year when PSNB was -GBP 2.8 billion.
by RTT Staff Writer
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