Gold prices climbed for a second day as a declining dollar increased demand for bullion as an alternative asset. Silver, platinum and palladium also rose.
The dollar fell as much as 0.9 per cent against a basket of six major currencies on speculation that European nations will help Greece fix budget problems. Concerns that Greece's deficit may lead to debt defaults drove the dollar to an eight-month high against the euro last week, while gold slid to a three- month low. Gold usually drops when the greenback advances.
"The stronger euro tone has prompted some bids" in gold, James Moore, an analyst with TheBullionDesk.com in London, said in a report. He said the metal "remains vulnerable to further liquidation should European Union officials not agree to assist Greece."
Gold futures for April delivery rose $US11, or 1 per cent, to $US1077.20 an ounce on the New York Mercantile Exchange's Comex unit. The most-active contract has fallen 1.7 per cent this year.
In London, gold for immediate delivery gained $US13.39, or 1.3 per cent, to $US1076.23 an ounce.
EU leaders are scheduled to meet on Feb. 11 to discuss the economic outlook, a summit that may be overshadowed by Greece's budget difficulties. US equities gained today on growing speculation that a Greek bailout will be forthcoming. Greek shares gained today after four days of declines.
