NEW YORK (
were ticking higher Monday as investors re-established positions in the yellow metal after
Gold prices for February delivery were tacking on $5.90 to $1,718.60 an ounce at the Comex division of the New York Mercantile Exchange. The
traded as high as $1,724.90 and as low as $1,714.20 an ounce, while the spot price was off 20 cents, according to Kitco's gold index.
"Because of liquidation on Friday ... a lot of commodity firms their fiscal year ended in November, December starts another year, and these guys could have liquidated some
and they could be re-establishing right now," said Phil Streible, senior commodities broker at RJO Futures.
Last Friday was first notice day for gold, when physical delivery of the yellow metal must occur.
for March Delivery were climbing 50 cents to $33.78 an ounce, while the
U.S. dollar index
was dropping 0.50% to $79.83.
"Dollar weakness is not adding too much support at all," said Streible. "It seems like there's some massive short-covering going on in the euro currency right now, and obviously it's some kind of gauge that there's some confidence in the eurozone."
That confidence has led some investors to move out of some of their positions of gold as a safety play and move back into the euro, Streible said.
The euro was climbing against the U.S. dollar to $1.3071, improving against Friday's close at $1.2987.
German lawmakers approved the bailout
agreement to Greece, even after the International Monetary Fund said it would not distribute the country's impending round of bailout loans until the country completed a voluntary buyback of its debt.
On Monday, Greece announced that it would
buy back as much as €10 billion in outstanding debt
. The bailout money could be seen as positive for gold as a hedge against inflation.
Also in Europe, Spain officially requested bailout funds for its banks from the European Stability Mechanism fund. Investors have expected Spain to request this bailout, but have waited for weeks as the country stalled on making a decision. Spain is set to receive €37 billion for the recapitalization of four banks.