Wednesday saw gold futures follow the upward trend set by the common currency of the European Union, Dow Jones Newswires reports.
Despite the gains of the yellowish metal, investment demand is likely to drop off as the holidays provide a pause in heavier trading. Advances for the embattled euro are somewhat due to the strong Tuesday performance of a Spanish debt auction that helped mollify worries about the wrath of the two-year-old sovereign debt crisis. One gold dealer theorized that demand for the yellowish metal will increase next year.
"Demand from China ahead of the Lunar New Year in late January should help support prices," states a note penned by precious metal dealer GoldCore, cited by Dow Jones Newswires.
At 7:38 a.m. on Wednesday, gold futures increased 0.51 percent, an $8.20 lift to $1,625.80 per troy ounce.
The U.S. Dollar Index, which tracks the value of the world's reserve currency when compared with six rival currencies, lost value late Tuesday, according to MarketWatch. The euro's gain also resulted from uplifting German economic data released on Tuesday.
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