Gold extends rally on EU debt concern

Gold futures on the COMEX Division of the New York Mercantile further hiked on Monday, buoyed up by concern that Europe's leaders won't do enough to resolve the region's debt problem, boosting the safe-haven demand for the metal. The most active gold contract for Dec. delivery gained 16.2 U.S. dollars, or one percent, to 1,652.3 dollars per ounce. Market analysts said that investors were cautiously optimism amid worries over European leaders'efforts in finding a comprehensive plan to address the region's debt crisis. EU leaders would meet on Wednesday and continue their discussion on seeking solutions to its debt problem. The past weekend's summit had failed to come up with a solution. Besides, gold trader higher amid rallies in others commodities, as renewed optimism for growth in China's manufacturing boosted prospects for raw-material demand. The HSBC Flash China Manufacturing Purchasing Managers' Index climbed to 51.1, up from 49.9 in September. A trader noted that optimism about Chinese growth is pushing all commodities higher, including gold. Silver for Dec. delivery rose 45.1 U.S. cents, or 1.5 percent, to 31.644 dollars per ounce. Platinum for January delivery also gained 32.8 dollars, or 2.2 percent, to 1,542 dollars per ounce.