CHICAGO, Aug. 21 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose sharply Tuesday on hopes of more central bank intervention in Europe.
The most active gold contract for December delivery advanced 19. 9 dollars, or 1.23 percent, to settle at 1,642.9 dollars per ounce.
Gold futures on Tuesday rose to their highest level in more than three months, after China hinted at fresh economic stimulus and investors were more optimistic about the euro zone, which resulted in a weaker dollar.
It is reported that China is planning fresh stimulus measures for the second half of the year, which is supportive to the gold on the day.
The euro rallied Tuesday on growing optimism that Europe's monetary authorities will take steps to reduce borrowing costs for countries such as Spain and Italy.
The ICE dollar index, which measures the greenback against a basket of six other currencies, fell to 81.888 from 82.475 in late North American trade in the prior session. Trading of dollar- denominated commodities tend to rise on a weaker dollar, as they get cheaper for holders of other currencies.
Silver for September delivery gained 83.5 cents, or 2.92 percent, to close at 29.428 dollars per ounce.
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