Gold's rally extends as Greece approves austerity plan
Gold futures on the COMEX Division of the New York Mercantile Exchange extended rally on Wednesday, as Greek approval of austerity measures could boost the euro against the U.S. dollar, which is helpful in supporting gold price.
The most active Gold contract for August delivery hiked 10.2, or 0.68%, to 1510.4 oz.
Market analysts said that the Greece's approval put pressure on the USD while benefiting the commodities in general and Gold. It added an extra support as many investors seek Gold as a physical currency against the paper currency Dollar.
The Greek parliament approved a package of additional austerity measures and asset sales in a bid to avert a potentially devastating default, even as thousands of protesters clashed with police in Athens.
As a result, the dollar index, which measures the performance of the US unit against a basket of 6 currencies, fell to 74.672 from Tuesday's 75.063.
Gold price has enjoyed a 2nd rise after falling below 1,500 Monday.
Silver for September delivery rose 1.117, or 3.3%, to 34.769 oz. Platinum for October delivery gained 33.1, or 2%, to 1726.6 oz.
Paul A. Ebeling, Jnr.
