Gold edges higher as euro rises against US dollar

Traders regained appetite for riskier assets after today's German business confidence data came in ahead of expectations, hitting the safe haven US dollar and lifting gold, an alternative asset to the greenback.

Germany's Ifo business climate index for November came in at 106.6 today, up from 106.4 in October, while expectations were for a decline to 105.1.

The euro received further support from reports that the German government might accept the proposal of joint euro zone bonds under certain conditions.

Chancellor Angela Merkel has previously denounced the idea of common bonds as "inappropriate and distressing".

Both the euro and gold trimmed gains later in the session after the leaders of the euro zone's three largest economies, France, Germany and Italy, agreed not to change the European Central Bank's (ECB) mandate to make it a lender of last resort for struggling euro zone economies.

France has previously proposed to widen the ECB's role to support dent-ridden euro zone members.

Gold traded at US$1,695/oz, up US$2.5 from Wednesday's close. Silver rose just one cent to US$31.77/oz, while platinum dropped US$7 to US$1,537/oz.

Today's top risers in the sector were:

Bezant Resources (LON:BZT), up 9 percent at 23.94 pence at midday

Arian Silver (LON:AGQ), up 8.5 percent at 20.44 pence

Serabi Gold (LON:SRB), up 7.5 percent at 10.75 pence

Central Rand Gold (LON:CRND), up 6 percent at 0.35 pence

The top fallers were:

Orsu Metals (LON:OSU), down 11 at 7.25 pence at midday

Solomon Gold (LON:SOLG), down 6 percent at 8.45 pence

Anglo Asian Mining (LON:AAZ), down 5 percent at 29.7 pence

Trans-Siberian Gold (LON:TSG), down 3.5 percent at 72 pence