Gold reversed gains Monday as the dollar strengthened but the precious metal remained supported by Eurozone debt woes after ministers delayed a decision on emergency loans to Greece.
Eurozone finance ministers kept up intense pressure on Greece, saying it had to approve tougher austerity measures before a final decision is made on a further ¤12 billion in loans.
Spot gold was at $1,536 by 1125 GMT compared with $1,538.40 an ounce late in New York on Friday, having risen above $1,541 on Friday its biggest one-day gain since May. Gold is still below a lifetime high around $1,575 touched in early May.
"It's treading water, you're not going to get too much movement either way until we get more clarification as to what happens on Greece," Credit Agricole analyst Robin Bhar said.
"The market is hungry for an actual agreement to be signed, sealed and dusted ... equities have come off this morning, the dollar is probably better bid than it was and markets are just starting the week slightly risk averse having had a good bounce on Friday."
The European Commission confirmed inspectors from the European Union and International Monetary Fund will visit Athens today.
The euro was pinned down near recent lows as a delay to the next tranche of Greek bailout funds undermined confidence in the common currency, with the options market and technical charts suggesting more losses.
Investors await the Fed's announcement on interest rates Wednesday, which could squeeze the dollar.
Financial markets are bracing for the conclusion at the end of June of the Fed's quantitative easing, a cheap-money policy credited with boosting stocks but blamed for sky-high commodities prices and a weak dollar.
From / Gulf News