Prices climb along with the euro after European leaders announce a commitment to shore up banks.
A weaker U.S. dollar was boosting gold prices Monday as investors cheered France and Germany's commitment to a plan to recapitalize European banks.
Gold (-GC) for December delivery was up $32 at $1,668 an ounce at the Comex division of the New York Mercantile Exchange. Gold has traded as high as $1,673.10 and as low as $1,639.90 an ounce, while the spot gold price was adding $24.50, according to Kitco's gold index.
Silver (-SI) prices were rising $1.27 at $32.26 an ounce while the U.S. dollar index was losing 1.6% at $77.33.
Gold and euro were rallying Monday after French President Nicolas Sarkozy and German Chancellor Angela Merkel agreed that a plan should be set in place to shore up Europe's financial system. Without providing details, the leaders committed to unveiling a plan within three weeks to protect banks even if Greece defaults.
