Gold Rises to Near Two-Week High on Euro

Source:

"Spot gold rose as high as $1,112.55/oz, its strongest since March 19"

Gold jumped to its highest in nearly two weeks on Monday as the euro extended gains after euro zone leaders agreed on a financial safety net for Greece.

Fundamentals

Spot gold rose as high as $1,112.55 an ounce, its strongest since March 19, and was at $1,106.45 an ounce by 0224 GMT, up $1.35 from New York's notional close on Friday, when it regained the psychological $1,100 level.

U.S. gold futures for April delivery added $2.2 to $1,106.5 an ounce.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings stood at 1,124.647 tons as of March 26, unchanged from the previous business day. [GOL/SPDR]

The euro charged to as high as $1.3530 in early trade on Monday as stops above $1.3430, $1.3450 and $1.3500 were triggered in thin volumes. [USD]

Last week, euro-zone policymakers agreed on an aid package under which Greece would receive both bilateral loans from euro-zone partners and funding from the International Monetary Fund if it faced severe difficulties.

Japan's Nikkei average slipped 0.8 percent on Monday as investors moved to lock in profits after the benchmark finished last week at an 18-month high, with defensive shares such as drug makers hit especially hard.

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