Gold hit 2-1/2-week highs on Wednesday, rising for the sixth straight session as upbeat German sentiment data helped drive the euro higher against the dollar, and as expectations for an imminent U.S. interest rate rise receded.

The euro was up 0.4 percent versus the U.S. currency after a survey on German business morale fueled expectations that a euro zone economic recovery is strengthening, extending gains after U.S. durable goods data missed expectations.

Spot gold was up 0.3 percent at $1,196.35 an ounce by 2:52 p.m. EDT (1852 GMT), having earlier touched its highest since March 6 at $1,199.70. U.S. gold futures for April delivery settled up $5.60 an ounce, or by 0.5 percent, at $1,197.

Spot silver was up 5 percent at $16.96 an ounce after rising to a five-week high at $17.11.

Source : Reuters