Gold rebounded from the lowest level in five weeks on Thursday, European leaders failed to reach agreement on Greece bailout program following a meeting in Brussels.
Spot gold was dropped to $ 1216.45 an ounce, its lowest level since January 9before rebounding to trade 0.1 percent to $ 1,220 in Singapore on Thursday.
The metal lost by 1.2 percent on Wednesday, while the dollar hit a three-week high versus a basket of major currencies as weakness in the EUR and YEN.
Gold rallied 3.3 percent this year as the Greek crisis and greater stimulation in Europe and Asia offset the impact of a stronger US dollar and the prospects for rising US rates. The finance ministers Euro-region failed at the meeting to reach agreement on how to keep the bailout funds to Greece and flux are going to resume talks next week. The impasse risks leaving most highly indebted nations in the region without funding from later this month, when the current bailout plan expires.
The Eurogroup President Jeroen Dijsselbloem said as long as ministers covered a lot of ground, which failed to reach a joint conclusion on how to the next steps. A Greek official said that no deal had taken and the government not be accepted an extension of the existing bailout program.
“Where financial markets are under pressure as EU finance ministers of the euro zone were unable to reach agreement with Greece a final statement or a way to continue the talks until its next meeting on Monday.” 100mcxTips Market Experts Said.
US gold futures April delivery grew by 0.2 percent to $ 1,222.50 an ounce on the Comex after dropping on Wednesday at $ 1216.50, the lowest price since Jan 9.
During the night, US stocks ended Wednesday as investors waited for negotiations between Greece and its international creditors. The Dow Jones Industrial Average closed 0.04%; Nasdaq Composite up 0.28% and the S & P 500 remained unchanged.
The Greece uncertainty knocked down Asian stocks and India’s benchmark Sensex was trading over 100 points lower on Thursday, led by losses in the shares of banking, oil and gas and metal companies.
Gold futures down trade on domestic market today as bullion players indulged in reducing exposures in tandem with a global trend. At the Multi Commodity Exchange (MCX), gold futures April delivery, fell by Rs 68, or 0.26 percent, to trade at Rs 26,597 per 10 grams.
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