MW: Gold furthers its reach as investors look for alternates
NEW YORK (MarketWatch) -- Gold extended its rise above five-month highs Tuesday as the metal took on heightened appeal to investors seeking alternatives to the euro and other currencies.
Support for the metal came along with "fears of euro-area contagion risk," noted analysts at Action Economics.
Gold for June delivery gained $3.9 to $1,187.2 an ounce on the Comex division of the New York Mercantile Exchange.
Debt trouble in Europe entered the mix again on Tuesday, with European markets falling due to the ongoing worries about whether a rescue package for Greece would be approved by European Union members who will have to pick up the bulk of the tab.
The dollar index (DXY 82.99, +0.72, +0.88%) , which contracts the greenback against six other rival currencies, rose 0.6% to 82.865 on Tuesday.
The SPDR Gold Trust (GLD 115.97, +0.26, +0.23%) , the largest exchange-traded fund backed by gold, rose 0.4%.
Lihir Gold of Papua New Guinea is now urging stockholders to okay an improved $8.8 billion offer from Newcrest Mining Ltd. of Australia in a deal that would create one of the globe's biggest gold producers, the companies said Tuesday.
Newcrest, which made its initial bid for Lihir on April 1, on Tuesday raised its bid by 6.4%, or $8.8 billion, they said in a joint statement. Read more about the proposed deal, which is still subject to regulatory approval.
Economic reports slated for release later in the day include data on factory orders and home sales, with both due at 10 a.m. Eastern.
