Gold rises as precious metals buyers respond to weaker dollar

Gold prices increased in early trade on July 11, as precious metals buyers responded to a lower value for the U.S. dollar.

Spot gold was trading 0.5 percent higher at $1,575.74 an ounce by 02:35 EDT, according to Reuters. August gold crept 0.2 percent lower to reach $1,576.10. By 12:20 GMT, spot gold was valued at $1,575.54 an ounce while U.S. gold was 0.2 percent lower at $1,576.00 an ounce, Reuters reports.

The U.S. dollar was trading close to its highest value in two years against the euro, according to the media outlet. The common currency received little boost during the week beginning July 9 as regional officials continued to take slow steps in ameliorating the debt crisis.

"The dollar is the major influence on the price of gold at the moment, it is the reason gold is up today," Commerzbank analyst Daniel Briesemann told the news source. "I don't think the FOMC minutes will have an effect at all. The Fed have already stated their fears about the global economy."