Gold futures on the COMEX Division of the New York Mercantile Exchange extended gains into a third session on Thursday, closing at their best level since mid- November, as Greece struggled to reach an agreement with its bond holders on cutting the country's debt burden, adding to concerns that Europe's fiscal crisis might deteriorate.

The most active gold contract for April delivery added 9.8 dollar, or 0.6 percent, to 1,759.3 dollars per ounce.

Market participants noted that gold has returned to safe haven status as Greece and its creditors are locked in talks over a debt- swap deal for the country.

"Traders are eyeing the European Union and especially the debt situation in Greece, the debt swap negotiator in Greece continues to say that negotiations continue and they are hopeful that a deal comes together in the upcoming days," said Mike Daly, a gold specialist with PFGbest here in Chicago. "There are enormous concerns that Greece will not be able to repay existing loans and are in need of another payout," Daly added.

The U.S. dollar moved moderately higher as investors were cautious about holding perceived risky currencies ahead of a final deal on restructuring Greece's debt, which took the wind out of the sails of gold traders.

Silver for March delivery added 36.8 cents, or 1.1 percent, to 34.175 dollars per ounce. Platinum for April delivery added 6.7 dollars, or 0.4 percent, to 1,629.9 dollars per ounce.