Gold gains despite US Dollar surge ahead of EU rescue meeting

Gold was slightly lower this morning as the US Dollar gained against the euro ahead of a two day meeting of EU finance ministers to discuss a rescue plan for debt laden Greece, which is set to kick off in Brussels today.
The debt crisis in a number of euro zone countries, also including Spain and Portugal, has been weighing on Europe’s single currency, propping up the US Dollar and pressuring gold, which is seen as an alternative investment and moves inversely to the American currency. The euro has been on decline against the US Dollar for five consecutive weeks, while gold slipped below US$1,100/oz after reaching US$1,200/oz late last year.
However, the yellow metal recovered later in the day, recapturing the US$1,100/oz mark as the EUR/USD conversion rate remained about the same. Gold’s appeal increased due to investors’ concerns over the outcome of the meeting in Brussels.
Other precious metals also advanced with silver and platinum reaching US$15.59/oz and US$1,519/oz respectively.
Mining stocks were on the rise with the exception of midcap Aquarius Platinum (LSE: AQP), which posted a marginal loss.
Silver and gold miner Fresnillo (LSE: FRES) led the sector in the FTSE 100 with a gain of nearly 3%, while gold miner Randgold Resources (LSE: RRS) and platinum producer Lonmin (LSE: LMI) were up 1.6% and 1.3% respectively.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) rose marginally.
Gold miner Petropavlovsk (LSE: POG) climbed 1.6%, while fellow FTSE 100 constituent silver producer Hochschild Mining (LSE: HOC) rose marginally.
Uzbekistan focused gold miner Oxus Gold (AIM: OXS) was one of the leading performers among the juniors, advancing 7%. Turkey focused gold miner Ariana Resources (AIM: AAU), Africa focused gold deposit developer Cluff Gold (AIM: CLF), copper and gold miner EMED Mining (AIM: EMED) and London listed Australian gold producer Leyshon Resources (AIM: LRL) all added more than 4%.
Commodity asset development company Mercator Gold (AIM: MCR) headed in the opposite direction, slipping 8%.  http://www.proactiveinvestors.co.uk/companies/news/13317/gold-gains-despite-us-dollar-surge-ahead-of-eu-rescue-meeting-13317.html