Gold on Tuesday gained for the first time in three days, as a weaker dollar spurred demand for the metal as an alternative investment option.
The yellow metal gained 0.5 per cent to $1,776.52 an ounce and silver rose 0.7 per cent to $35.64 an ounce. It has been the best-performing precious metal this year — up 28 per cent. An ounce of gold bought as little as 49.76 ounces of silver on Tuesday, the least since November 1.
The dollar declined versus the euro before the European Central Bank allots a second round of unlimited three-year funds tomorrow to help the region’s banks.
European equities gained after Germany’s Parliament voted to approve a second package of financial aid for Greece. Gold prices are up 14 per cent this year after a 10 per cent increase in 2011, an eleventh consecutive annual gain.