Gold futures edge rose on Wednesday because investors looked ahead to a meeting of the Euro Group finance ministers in Brussels, Greece later in the day, amid current nervousness about the future of Greece to the Eurozone.
US Dollar took a breather following the recent strong returns as caution prevailed on the financial markets on the future of Greece in the Eurozone.
The uncertainty about debt issuances in Greece has assisted a bit of gold in recent days, but the metal continues to be reduced almost 4 percent so far this month as a strong dollar and the expectations of Fed interest rate hike in the United States have hurt the yellow metal.
Spot gold was up 0.3 percent to USD 1,237.40 an ounce, following a fall of 0.4 percent on Tuesday.
On the Comex, US gold futures for April delivery was studded on $ 3.80, or 0.31%, to trade at $ 1,236.00 a troy ounce.
“Gold may have traded nearest USD 1,200 before surfacing market demand is encouraged sufficiently to stem the decline in prices,” 100McxTips Commodity Analyst said.
“All eyes are focused on Europe, where the probability of Greece leaving the euro zone has increased in recent days as Prime Minister Alexis Tsipras has taken a growing hard line on government debt.” he added.
Finance Minister of Greece Yanis Varoufakis is scheduled to meet with other finance ministers from the euro zone later on Wednesday to discuss a solution to the Greek Rescue Agenda.
Athens is expected to call for bridge financing to fill their financing needs until September, and offer further new economic reforms to replace some of the harshest austere conditions tied to their rescue.
Greek Prime Minister Alexis Tsipras has said he will comply pre-election promises to reverse the austerity measures and refuse an international relief extension, fueling concerns over the future of Greece to the eurozone.
Amid speculation that Greece out of the Eurozone, moves of gold at domestic marketplace also is quite sluggish. Comex gold dollar is trading at a very small radius of $1235. Mild weakness in the rupee against the dollar today.
Currently MCX gold is trading flat at Rs 26 870.
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