Gold gains after declining to 6-week low

Gold today gained for the first time in three days as some investors bought the metal after its drop to a six-week low and as a weaker dollar spurred demand for an alternative asset.

The gold gained $8.28, or 0.6% to $1,496.05 an ounce. The metal dropped to $1,478.83 on July 1, the lowest level since May 17.

However, silver rose 0.8 per cent to $34.15 an ounce. Floor trading in the US was closed today for the Independence Day holiday.

The dollar touched a three-week low versus the euro on speculation the European Central Bank will raise interest rates this week. European finance ministers on authorised an $12.6 billion loan payout to Greece by mid-July after the nation's parliament passed austerity measures.