Gold futures on the COMEX Division of the New York Mercantile Exchange hiked for the fifth trading day on Thursday, as investors hailed the Europe's plan that is aimed at addressing the region's debt crisis. Meanwhile, a weaker U.S. dollar also added to the positive tone.
The most active gold contract for Dec. delivery hiked 24.2 U.S. dollars, or 1.4 percent, to 1,747.7 dollars per ounce.
Market analysts said that gold gained strength after European leaders Wednesday agreed on a plan to stem the region's debt crisis, which helped underpin the value of euro and thus, cut that of U.S. dollar.European leaders announced a deal that included a voluntary 50- percent write-down on Greek government debt, more bailout funds and measures to recapitalize of European banks.
As a result, the dollar index, which compares the U.S. unit to a basket of six other currencies including euro, Thursday traded around 74.97, down 1.64 percent from the prior trading day. Gold historically moved in the opposite direction with dollar.
Gold has gained 6.8 percent so far this week, buoyed up by hefty safe-haven demands thanks to concerns over EU debt problem.
Silver for Dec. delivery rose 1.802 dollars, or 5.4 percent, to 35.112 dollars per ounce. Platinum for Jan. delivery also gained 44.2 dollars, or 2.8 percent, to 1,641.4 dollars per ounce