Gold futures were pushing higher on Tuesday amid strong sentiment about the U.S. economy resisting damaging tendencies inflicted by the sovereign debt crisis tearing through the euro zone, Bloomberg reports.
Reuters reports the value of the U.S. dollar sank, which typically benefits the yellowish metal as the two perform the inverse of one-another.
"Gold will continue to trade in a broad $1,550 to $1,650 range in the short term as investors battle between trading gold as a commodity and gold as a safe haven," analyst Sun Liying with China International Futures told Bloomberg. "To this end, market sentiment about Europe's debt crisis and movements in the U.S. dollar will drive gold in the near term."
At 8:07 a.m. on Tuesday, gold futures gained 1.87 percent, a $30.10 advance to $1,638.20 per troy ounce.
German Chancellor Angela Merkel, who oversees the euro zone's largest economic system, is slated to convene on Tuesday with Christine Lagarde, managing director of the International Monetary Fund, according to Bloomberg. The meeting comes one day after Merkel and French President Nicolas Sarkozy hashed out a plan to prevent the sovereign debt crisis from spreading.
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