Gold prices closed at their highest level in nearly three weeks on Tuesday, spurred by a drop in the dollar and tensions in Eastern Europe and the Middle East.
Gold for December delivery rose 1.2% to $1,197.10 a troy ounce, the highest settlement since Oct. 30 for the most actively traded gold contract on the Comex division of the New York Mercantile Exchange.
Germany’s ZEW index, a widely followed measure of economic confidence, rose in November for the first time in almost a year, suggesting an upturn in the region’s prospects after a year of weakness. The unexpected gain gave the euro a boost and weighed on the dollar. A weaker dollar helps lift prices for gold, which is priced in the U.S. currency and becomes less expensive for foreign buyers when the greenback falls.