Dollar Pullback Props Up Gold

Updated from 11:41 a.m. EST

A weaker dollar gave gold a boost Wednesday as news that a foreign government is diversifiying its holdings hit the greenback.

February-dated bullion contracts closed up $3.40 at $630.30 an ounce on the Comex division of the Nymex. The exchange-traded funds that hold the metal were also rising, with the streetTRACKS Gold Shares(GLD Quote) and the iShares COMEX Gold Trust(IAU Quote) both ahead by about half a percent.

Reports that the United Arab Emirates would diversify its foreign currency reserves by purchasing more euros provided the currency-moving catalyst. Traders viewed the move as symptomatic of a wider trend and quickly bid up the euro. ...