The Australian dollar rose following a gain in gold prices overnight.

At 6.30am AEDT today the local unit was trading at 103.94 US cents, up from 103.60 cents at yesterday’s local close.

Gold settled at the highest price in almost three weeks after renewed worries about the health of Europe's financial system pushed investors into the perceived safe-haven metal.

The most actively traded contract, for April delivery, on Monday rose $US12, or 0.8 per cent, to settle at $US1,604.60 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest settlement since February 26.