Gold futures prices rose for a third day on Monday, the longest winning streak in nearly six weeks, amid a weaker US dollar and as the EU finance ministers prepare to meet amid a call out on the financing of Greece.
Greek Finance Minister Yanis Varoufakis leads a delegation to Brussels on Monday after weekend discussions aimed at identifying common ground failed to make sufficient progress. While Greece wants a six-month bridge arrangement to replace the current bailout and allow time to discuss a new deal, creditors say Alexis Tsipras’s government must abide by agreements struck by previous Greek administrations. (Source: Bloomberg)
Gold for April delivery settled by 0.6 percent to $ 1,234.10 on the Comex in New York. US markets are closed for a holiday on Monday.
The past week, gold rose on Friday as a broadly weaker US dollar and the current uncertainty on the events in Greece boosted the appeal of the precious metal.
The dollar’s decline came after data on Friday showed that consumer trust unexpectedly deteriorated in February.
Spot gold was up 0.5 percent to $ 1,235.50 an ounce, after gaining 0.6 percent in the previous session.
Traders were observing a meeting of EU Finance Ministers in Brussels later on Monday to find common ground with the new Greek government, elected on a promise of casting aside the restrictions austerity international bailouts of Greece.
Whether the meeting doesn’t yield results, there is concern about that Greece is heading for a credit crisis, which would oblige it out of the Eurozone.
Holdings in exchange-traded products dropped for a fourth day as of Feb. 13, declining 3.2 metric tons to 1,670.7 tons, data compiled by Bloomberg. That capped the first weekly decline in a month after the assets reached a maximum of four months, on February 9th.
The precious metal also found support from a weaker US dollar, which slid as data on Friday showed US consumer sentiment unexpectedly fell in February from an 11-year high.
The rupee opened at 62.16 per dollar and touched a high and a low of 62.08 and 62.23 per dollar, respectively intra-day and closes marginally higher at 62.16 per dollar.
Meanwhile, Gold prices gained in MCX futures trade as traders created fresh positions after the precious metal climbed for the third straight day in global markets. At the Multi Commodity Exchange, gold futures April contract was up by Rs 57, or 0.27 per cent, to Rs 26,750 per 10 grams.
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