London: Gold prices rose in Europe on Monday as the euro recovered early losses to firm versus the dollar, with the yellow metal also benefiting from strength in other commodities such as oil and copper.
Silver meanwhile climbed to its highest since early February at $16.73 an ounce, lifted by gains in industrial metals. Spot gold was bid at $1,120.40 an ounce at 0952 GMT, against $1,116.20 late in New York on Friday. US gold futures for April delivery on the Comex division of the New York Mercantile Exchange rose $2.20 to $1,121.30 an ounce.
"There is a combination of factors here," said Wolfgang Wrzesniok-Rossbach, head of sales at precious metals house Heraeus. "The most important driving force for gold is the euro/dollar ... and we also have relatively strong oil prices."
"There is some physical demand around, and also the financial situation in the Mediterranean, in Greece and elsewhere, is still open. People don't know what's going to happen, so they're buying gold as a safe haven."
The euro turned higher versus the dollar on Monday, recovering early losses, as signs emerged that a support deal for Greece may be near. Fears over the country's fiscal health have kept the pressure on the single currency this year.
European Central Bank executive board member, Juergen Stark, was in Athens with the EU's Economic Affairs Commissioner Olli Rehn to meet Greek officials on the fiscal crisis.
