Gold, silver and other precious metals soar
Silver is stuck below 33.00 in the near term and the market will be waiting for a break above 33.00 as the major short-term trigger for longs. More aggressive traders could be looking for longs while we remain above 32.30 in expectation of a move to 33.00. REUTERS

Gold bounced back to a one-week high following the substitution of last week's selling pressures with expectations of a stronger effort by eurozone leaders to stem the spread of the sovereign-debt crisis. Spot gold held steady above $1,700 per ounce on Tuesday.

The euro rose 0.5 percent against the dollar, heading for the biggest gain since Nov. 18, after German Finance Minister Wolfgang Schaeuble urged fast-track treaty changes to tighten budget discipline in the European Union. Eurozone leaders face increasing pressure from other countries and rating agencies to solve the two-year-old debt crisis.

Investors will keep a close watch on a meeting of eurozone finance ministers later in the day, in hopes that European policymakers will take decisive steps to tackle the region's debt crisis. Investors have become more optimistic about the region after reports that European officials have made some progress in reining in sovereign-debt crisis and arriving at a plan for their bailout fund.

There was a slight weakness in the dollar which is a boost to dollar-denominated commodity prices as it makes them cheaper for holders of other currencies.

The precious metal has climbed 21 percent this year, reaching a record $1,923.70 on Sept. 6.

However, gold is unlikely to stage new highs as trading activity slows ahead of the year-end, with traders booking profits and moving to the sidelines of the market before the holidays.

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