Gold futures on the COMEX Division of the New York Mercantile on Tuesday settled above 1,700 U.S. dollars per ounce, rising for a third day in a row, as wide concerns over resolving the EU debt problems triggered increasing safe-haven demands.
The most active gold contract for December delivery hiked 48.1 dollars, or 2.9 percent, to 1,700.4 dollars per ounce.
Gold and silver are benefiting from increased demand for "safe haven" investment as disenchanted investors are showing their skepticism that Wednesday's EU summit will result in a solution to the region's financial crisis, said Mike Daley, a senior gold analyst with PFGBest.
It is reported that a meeting of EU finance ministers that had been set to take place ahead of Wednesday's EU summit has been canceled, intensifying doubts among some investors about the ability of EU leaders to conclude a solution to the eurozone debt crisis.
Meanwhile, the Conference Board Tuesday said that U.S. household sentiment index unexpectedly slumped to 39.8 in October, the lowest level since March 2009, which also helped fuel gold's gains.
Silver for December delivery rose 1.408 dollars, or 4.45 percent, to 33.052 dollars per ounce. Platinum for January delivery also gained 26.8 dollars, or 1.7 percent, to 1,568.8 dollars per ounce.