NEW YORK (TheStreet) -- Gold prices were rallying Tuesday on the back of a stronger euro.
Gold for April delivery was rising $8.10 to $1,074.30 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,079.80 and as low as $1,062.10. The U.S. dollar index was slipping 0.36% to $80.01.
The dollar came under pressure Tuesday as the euro staged a mini-rally, strengthening gold's appeal as an alternative asset. The euro was finding support on rumors that a rescue plan for the PIGS countries could be under way. Sovereign debt fears out of Greece, Spain and Portugal have rocked markets recently as investors worried the countries would default on their debt.
Bargain-hunting around the $1,030 level also was supporting higher gold prices. But many analysts expect more short-term downside.
"Risk assets as a whole, remain vulnerable to further liquidation should EU officials not agree to assist Greece and possible other EU-PIGS," predicts James Moore, analyst at thebulliondesk.com in his daily precious metals report. "Further chart support is expected ahead of $1,044 in gold. ... Resistance is pegged at $1,073." If gold is able to close above the $1,080 area for multiple trading days, many analysts anticipate another modest leg higher.
Silver prices were rising 17 cents to $15.26 while copper was up 3 cents to $2.95. Platinum and palladium continued to track other precious metals rising to $1,497.70 and $413.85, respectively.
Mining stocks, a more leveraged way to invest in gold, were rising along with broader equities. Barrick Gold(ABX Quote) was rising 2.69% to $35.50, while Newmont Mining(NEM Quote) was higher by 2% at $45.32. Other large-cap miners Kinross Gold(KGC Quote) and Goldcorp(GG Quote) were rising to $17.12 and $35.37, respectively.
