Gold rises to its highest level amid anticipation of the Greek debt swap deal

A look on Comex market

Futures rose gold for the third day on friday, amid cautious optimism that Greece is close to a deal to swap debt with creditors, paving the way for the country to secure a second rescue package -.

In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for April delivery at 695.85, $ 1 per ounce during the European morning trade early, up by 0.71%.

And this had risen earlier by as much as 0.8% to trade at the highest level for two days of USD1, 697.05 an ounce.

Gold was likely to find support at 663.75, $ 1 per ounce on Tuesday, the lowest level and resistance at, 709.75 0.1 the highest level on Tuesday.

The gold’s gains came because of the high euro against the U.S. dollar, while the dollar index, which measures the performance of the greenback against a basket of six other major currencies, rose 0.15% to trade at 79.61.

Gold is still more sensitive to the movements of the exchange rate of euro / dollar in the short term risk aversion, which were positive in the past a positive drive for the price.

And strengthened the single currency a report released on Wednesday that a number of major European financial institutions have signed a deal to exchange the bonds, which aims to reduce the gain of 53.5% of debt amounting to 177 billion euros.

The debt swap deal for Greece to reduce its debt and secure the rescue package of $ 130 billion euros is vital. Without the aid package, it is possible to face the risk of Greece defaulting later this month.

Gold could benefit from such an environment of easy money because of expectations that the abundance of liquidity may destroy the value of paper currencies.

The precious metal came under pressure after selling big in recent weeks after that, said Federal Reserve Chairman Ben Bernanke that he was disappointed the financial markets when he pointed to the possibility of the work of another round of monetary easing policy ..

Investors are also looking forward to the European Central Bank meeting on Thursday, which is expected to leave interest rates unchanged.

Elsewhere in the COMEX silver for May delivery rose 0.65 percent to trade at] 33.81 dollars per ounce, while copper for May delivery rose by 1.05% to trade at 3.808 lbs.