CHICAGO, Feb. 16 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange ended sharply higher on Tuesday as dollar tumbled with investors more confident in the world economy's recovery. Silver and platinum both went up.
The most active gold contract for April delivery gained 29.80 U. S. dollars, or 2.7 percent, to finish at 1,119.80 dollars an ounce.
The dollar saw a huge decline on Tuesday after a long weekend as a strong report on New York state manufacturing and a better- than-expected profit at the British bank Barclays and several American companies helped offset worries about debt and credit across the globe.
Meanwhile, the European Union countries have pledged to provide a financial bailout for Greece if needed, although any concrete bailout plans are still not on the table.
As investors' risk appetite for safe-haven ebbed, dollar dipped to a one-week low. The dollar index, a gauge measuring the greenback's value against six major currencies, slid 0.65 to 79.76 shortly before the gold pit trading closed. That is the weakest level in recent five sessions, fueling gold to climb to a two-week peak of 1,121.90 at noon. Investors usually purchase the precious metal to hedge the risk of dollar depreciation.
Strong oil gave additional support to gold's rally. The benchmark oil contract for March delivery jumped 4 percent to above 77 dollars a barrel on Tuesday, responding to a weaker dollar, stronger equities, and escalating tensions over sanctions against Iran.
March silver was up 70.1 cents to 16.148 dollars per ounce. April platinum rose 26.60 dollars to 1,537.70 dollars an ounce.
