Gold Little Changed Ahead of Greek Talks

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Gold Little Changed Ahead of Greek Talks

Gold futures were little changed as traders assessed the outlook for Greece while financial officials met to discuss funding deals so the nation prevents defaulting on its debt obligation.

The dollar erased its gains against the basket of 10 currencies after Dutch Finance Minister and Eurogroup President Jereon Djisselbloem told reporters in Brussels there was “still reason for some optimism” on Greek talks “but it’s very difficult.”

Gold climbed earlier after Malta’s finance chief reported that a German-led bloc is willing to let Greece leave the euro.

Bloomberg quoted Peter Hug, the global trading director of Kitco Metals Inc. in Montreal as having said in a report, “Gold is extremely nervous. The market is trading on all news snippets and rumors.”

The metal has risen around 2% this year, partly as the Greek turmoil spurred volatility in currency and investors sought safety in precious metals. Global economic growth might decline in the region amid the tension, boosting the bullion’s appeal as a store of value.

Reuters reported that spot gold, initially lower, rose 0.3% at $1,211.60 per ounce. The metal has lost about 1.6% this week, dipping to a $1,197.56 low of six weeks on Wednesday, when hopes for a successful resolution to the Greece debt talks boosted the risk appetite for investors.

April delivery US gold futures rose $3.70 per ounce to $1,210.80 on the day.

The dollar climbed against the euro on reports that the European Central Bank officials are preparing for a departure of Greece form the euro zone.

Silver climbed 0.3% to $16.39 per ounce and platinum dropped 0.4% to $1,161.00 per ounce after reaching a low of five and a half years at $1,151.40 in an early session. Palladium dropped 0.9% to $776.65 per ounce.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com