December gold traded up 1.63% at mid-day Tuesday to $1,388 an ounce, and the SPDR Gold Trust ETF (GLD) improved 1.62% to $135.61.
In addition to the declining value of the euro, the precious metal was also helped by growing demand in China. Lion Fund Management Co. became the first firm to receive approval from Chinese government to invest in overseas ETFs backed by gold, Bloomberg reported Tuesday.
ETFS Physical Swiss Gold Shares (SGOL) advanced 1.5% to trade at $138 on Tuesday.
According to ETFS, gold prices have risen 30% in the past 10 years with volatility of about 18%. Spot gold improved 14% in the first six months of 2010.
Silver, which has nearly double the volatility of gold, traded higher on Tuesday, as well.