Gold advanced for the second day on Monday as hopes that European leaders will bridge differences among them to reach a decisive and comprehensive agreement on Wednesday enhanced demand on commodities and shares. Now, gold is leaving its basic characteristic which is being a safe haven asset and moving with shares which mainly reflects the sentiment in the market The European summit on October 23 discussed main issues such as banks recapitalization and expanding the EFSF firepower while the ECB's participation in the EFSF was mainly ruled out. Yet, there are still some worries where Greek banks shares fell after German Chancellor set a size between 50% and 60% to Greek writeowns of Greek debt, as cited by the Greens party's Juergen Trittin. Moreover, trading today witnessed some fluctuation as while Chinese manufacturing sectors showed expansion for the first time in three months in October, euro area manufacturing and services sector's contraction widened in October. Spot gold is traded around $1655.10 an ounce after recording a high of $1661.68 and a low of $1635.27. Gold recorded the first weekly decline in two weeks last week as worries throughout the week that European leaders are divided over the ECB role and leveraging the EFSF supported the dollar. Crude oil for November delivery, on the other hand, advanced to trade around $89.50 a barrel compared with the day's starting level of $87.14. Moreover, the shiny metal as well as other commodities, also took advantage of the drop in the dollar which was damped as a refuge amid hopes the coming European summit will put an end to the crisis. The dollar is currently traded low the at 76.25, after the breach of strong support at 76.45, compared with the day's starting level of 76.45, according to the dollar index which tracks the dollar movements versus six major currencies. Among other precious metals, sliver edged up to $31.73 from the day's opening of $31.52, platinum surged to $1536.20 from $1528.75 and palladium soared to $626.75 from $625.25 as of 14:35 GMT.
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