The price of gold rose by a significant amount due to an increased level of safe-haven buying from traders due to the potentially disastrous situation that exists in Europe, The Street reported.
Gold for December delivery increased $18.90 to $1,775 an ounce on the Comex division of the New York Mercantile Exchange, according to the news outlet.
The Greek situation is far from resolved, due to an interim government taking over, and a new sense of fear on the continent has risen concerning new developments in Italy. Though these helped to boost the precious metals market, the gains were tempered by a stronger U.S. dollar, The Street reported.
Though the strength of the greenback is preventing gold from skyrocketing, the European situation has given analysts confidence concerning high value for metals in the coming weeks, according to Bloomberg.
"Gold is responding to the general market mood that the European crisis will develop much worse before it gets better," Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland, told the news outlet. "At the moment we do not have a foreseeable lasting solution and high uncertainty remains."