Gold Moves Higher on a Weaker Dollar

“Gold gained for a second day in New York before European Union leaders hold a summit this week amid speculation Spain will move toward seeking financial assistance.

Germany is open to Spain seeking a precautionary credit line from Europe’s rescue fund, two senior German coalition lawmakers said, prompting speculation that the Iberian nation may take the aid and help contain the euro-zone’s debt crisis. The euro rose to a one-month high against the dollar before trading up 0.5 percent. The U.S. Dollar Index, a gauge against six counterparts, fell for a second day, dropping 0.5 percent.

“Gold and the precious complex have been held afloat overnight and this morning by a stronger euro,” Edel Tully, an analyst at UBS AG in London, wrote today in a report. “Gold’s ability to stay buoyed today will be dependent on foreign exchange moves and risk appetite.””

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