Gold Prices Sustain Rally

Gold prices and the euro were rallying Tuesday as the U.S. dollar weakened
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NEW YORK (

TheStreet

) --

Gold prices

were rallying Tuesday on the back of a stronger euro.

Gold for April delivery was rising $8.10 to $1,074.30 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,079.80 and as low as $1,062.10. The

U.S. dollar index

was slipping 0.36% to $80.01.

The dollar came under pressure Tuesday as the euro staged a mini-rally, strengthening gold's appeal as an alternative asset. The euro was finding support on rumors that a rescue plan for the PIGS countries could be under way. Sovereign debt fears out of Greece, Spain and Portugal have rocked markets recently as investors worried the countries would default on their debt.

Bargain-hunting around the $1,030 level also was supporting higher gold prices. But many analysts expect more short-term downside.

"Risk assets as a whole, remain vulnerable to further liquidation should EU officials not agree to assist Greece and possible other EU-PIGS," predicts James Moore, analyst at thebulliondesk.com in his daily precious metals report. "Further chart support is expected ahead of $1,044 in gold. ... Resistance is pegged at $1,073." If gold is able to close above the $1,080 area for multiple trading days, many analysts anticipate another modest leg higher.

Silver prices

were rising 17 cents to $15.26 while copper was up 3 cents to $2.95. Platinum and palladium continued to track other precious metals rising to $1,497.70 and $413.85, respectively.

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Mining stocks, a more leveraged way to

invest in gold

, were rising along with broader equities.

Barrick Gold

(ABX)

was rising 2.69% to $35.50, while

Newmont Mining

(NEM) - Get Report

was higher by 2% at $45.32. Other large-cap miners

Kinross Gold

(KGC) - Get Report

and

Goldcorp

(GG)

were rising to $17.12 and $35.37, respectively.

Shares of

Freeport McMoRan Copper

(FCX) - Get Report

were rising 3.60% to $71.69. A group of analysts surveyed by

Bloomberg

predicted that copper could rise 30% in 2010 and that

Freeport

is one of the best and cheapest stocks to buy based on rising prices.

Southern Copper

(PCU)

was also rallying 3.69% to $28.28 after Credit Suisse upgraded the stock to outperform from underperform.

SPDR Gold Shares

(GLD) - Get Report

was flat at $104.04.

>>Slideshow: How to Invest in Gold

>>More stories on gold investing

--

Written by Alix Steel in New York

.

Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.