Precious metals buyers push gold higher as EU summit boosts sentiment

Various gold prices moved higher on June 29, as precious metals buyers responded to the outcome of the recent European Union (EU) summit.

Spot gold was trading 3 percent higher at $1,596.76 an ounce at 9:03 a.m. EDT, according to Reuters. August gold was $47.40 higher per ounce at $1,597.70 on the Comex division of the New York Mercantile Exchange.

After surging to more than $1,920 per ounce in September, 2011, the metal has averaged slightly higher than $1,650 an ounce during the first six months of 2012 and is very close to its value at the start of the year, the media outlet reports.

Officials representing the 17 euro zone nations pledged to create a region-wide supervisor for the banks in the consortium of European countries, according to Reuters. These leaders also agreed to address the rising borrowing costs being suffered in Spain and Italy.

"The news has been positive for the euro and positive for confidence in general, which means that equities and commodities, including gold for the time being, have all received a shot in the arm," Simon Weeks, head of precious metals at the Bank of Nova Scotia, told the news source.