Weak Dollar Boosts Gold

Gero also notes some market participants are even choosing to buy deep out-of-the-money calls with April expiration dates. Open interest in calls struck at $750 and $800, now totals more than half a million ounces each.

In the official sector, the European Central Bank says it made a net sale of 39 million euros of gold and receivables, or about 2.4 tons last week. The transaction reflects selling by one member bank and purchases by another, and marks the second consecutive period that transactions involved at least one entity adding to gold inventories. As with last week, the buying component will no doubt boost spirits among the bulls.

Elsewhere, State Street says it saw net additions of $95 million for the Gold Shares ETF in January, bringing the total to a $9.6 billion currently, with holdings of about 459 tons of the yellow metal.

In the precious-metals patch, BMO Capital Markets dinged AngloGold Ashanti(AU Quote) with a ratings downgrade to market perform from outperform. But shareholders kept their eyes on the rising metal prices and the stock was recently gaining 0.6%.

Shares of Newmont Mining(NEM Quote) were up 0.2%, while Goldcorp(GG Quote) was lifting 0.4%, and Harmony Gold(HMY Quote) was bouncing 2.1%.

As for base metals, copper contracts rallied on the Comex, closing up 8 cents to $2.50 a pound.

Shares of diversified miners BHP(BHP Quote) and Rio Tinto(RTP Quote) were both rising, ahead by 1.4% and 1.3%, respectively, in recent action.