NEW YORK—Gold and silver futures rebounded, climbing alongside the euro as investors cheered unexpected progress in Europe's fight to stem its debt crisis.
Gold for August delivery, the most actively traded contract, was recently trading $46.10, or 3%, higher at $1,596.50 per troy ounce on the Comex division of the New York Mercantile Exchange.
July-delivery silver futures climbed $1.073, or 4.1%, to trade at $27.320 per troy ounce.
European Union leaders said they will allow euro-zone countries that aren't already receiving bailout aid to directly access two of the region's rescue funds to recapitalize their banks. The move aims to stabilize volatile markets and lower borrowing costs without raising the given country's sovereign-debt load.
Also, the EU leaders plan to make the European Central Bank the sole supervisor of the euro zone's banking system, bringing the region closer to a unified bank system.
"The news has cheered markets, with buying across assets, and precious metals are also benefiting from the renewed strength in the euro," said Marc Ground, a metals analyst with Standard Bank, in a note to clients.
A weaker dollar also spurred precious metals higher. The dollar sank against the euro, with the single European currency bursting above $1.26 and recently changing hands at $1.2668, up 1.8%.
Gold and silver futures are traded in dollars and become less expensive for investors who use other currencies, drawing these buyers to the precious metals market.
