Dollar's Drop Props Up Gold - TheStreet

Precious metals prices were rising Tuesday as the greenback weakened against the major European currencies.

Benchmark contracts for gold bullion were tacking on $3.90 at $680.50 an ounce, while silver was up 17 cents at $13.07 an ounce, in recent New York futures market activity.

The exchange-traded funds that own hold bars of bullion were also climbing. The

streetTracks Gold Shares

(GLD) - Get Report

was up 0.3% and the

iShares Silver Trust

(SLV) - Get Report

was better by 1%.

Euros were trading for $1.3706, up from $1.3694 late Monday. The British pound was selling for $2.0314, up from $2.0251 a day earlier. The dollar was gaining against the yen.

The prices of dollar-denominated assets, such as precious metals, tend to move higher as the value of the U.S. currency declines.

Turning to the mining patch,

Meridian Gold

( MDG) said its board of directors had unanimously rejected the unsolicited takeover offer from

Yamana Gold

(AUY) - Get Report

, which was first proposed last month.

The announcement helped boost Meridian 2%. Yamana was rising 1%.

As for base metals, copper prices were rallying 6 cents at $3.65 a pound.

Elsewhere, Canadian miner

Teck Cominco

(TCK)

reported a drop in earnings during the second quarter. The company cited declining sales of copper and falling coal prices as reasons for the shortfall.

CIBC World Markets upped its rating on uranium miner

Cameco

(CCJ) - Get Report

to sector outperform from sector perform, helping lift the shares 3% in early action.