Optimism about leaders in the euro zone putting the final touches on a fund to restrict the sovereign debt crisis from infecting additional nations pushed up the price of gold on Tuesday, according to Reuters.
As euro zone leaders prepare for meetings on Wednesday, which will mark the second summit in four days concerning the European Financial Stability Facility's confrontation of the debt scourge, the shared currency of the European Union rose in value against the U.S. dollar. Gold typically performs the inverse of the greenback.
"The yellow metal is showing little independence at the moment and still moving in line with commodities and equity markets, albeit underperforming. We therefore do not expect any great price swings either in the wake of the EU summit on Wednesday," states a note from Commerzbank. "Should a solution to the debt crisis be presented, gold will probably be pulled up slightly. Should expectations be disappointed, its character as a safe haven is likely to limit the downside potential."
At 9:03 a.m. on Tuesday, gold futures climbed 0.11 percent, a $1.90 lift to $1,654.20 per troy ounce.
The Tuesday session initially began with gold futures losing value but bullion reversed course while traders and investors were cautious, Dow Jones Newswires reports.
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