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US gold futures rallied almost 3 percent to two-week highs early on Tuesday as the euro gained strength against the dollar on the view that markets had over-reacted to Greece's debt problems. COMEX April gold up $27 at $1,117 an ounce at 10:15 am EST (1515 GMT) on COMEX division of NYMEX. Range $1,092.00 to $1,121.40, the highest level since the top of $1,126.40 set on February 3.
Investors purchase gold to hedge against debt default risks in Europe, adding to 2 percent gains from last week. The euro rose against the dollar, recovering from heavy losses on Greece fiscal woes. Gold-to-oil ratio at 14.61, against 14.75 in the previous session. COMEX estimated 10 am volume at 118,222 contracts.
Spot gold at $1,1116.75 at 10:15 am EST (1515 GMT). March silver up 44 cents at $15.887 an ounce, tracking gold rally. Range $15.450 to $15.965. COMEX estimated 10 am volume at 29,334 lots. Spot silver at $15.85 an ounce, compared with $15.52 late in the previous session in New York. April platinum rises $26.10 at $1,537.20 an ounce. Spot platinum at $1,533.50 an ounce. March palladium up $12.65 at $430.80 an ounce, tracking stronger platinum. Spot palladium at $426 an ounce.

Copyright Reuters, 2010

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