Dollar Hits All-Time Low Vs. Euro

The streetTracks Gold Shares(GLD Quote) and the iShares Silver Trust (SLV Quote), which both hold inventories of bullion, were up 0.6% and 1.1%, respectively.

Also providing further underlying support to gold prices was news that the U.S. Navy was sending a third aircraft carrier group to the Persian Gulf. Some investors purchase gold during times of geopolitical instability, and the addition of extra warships in a region with already rampant conflict may augur a showdown between the U.S. and Iran or other Middle East countries.

As for base metals, prices for copper contracts were off 3 cents at $3.60 a pound. The price was off the psychologically important $3.63 level, which equates to roughly $8,000 a metric ton.

Elsewhere, after the close Monday, aluminum smelter Alcoa(AA Quote) reported second- quarter earnings of 81 cents a share, in line with Wall Street's estimate. However, sales for the period fell short of expectations, and the stock recently was down 0.2%.

The London-based Times newspaper reported that mining behemoth BHP(BHP Quote) may team up with private-equity firm Blackstone Group(BX Quote) to make a $40 billion bid for Alcoa.