Gold rose on Monday, tracking a firm euro, as fears of a messy Greek exit from the eurozone receded slightly after opinion polls showed pro-bailout conservatives in the lead, but gains were checked as worries about the region were far from over. "June will be a key month as investors await the Greek election," said Lynette Tan, an analyst at Phillip Futures in Singapore. "Gold will probably be rangebound between $1,530 and $1,600 per ounce if there's no major news before the election."
Bullion shed more than 1 percent last week, in tandem with the euro, equities and other commodities, as investors fretted over the impact of a potential Greek exit from the eurozone and rushed to lower-risk assets such as the dollar and US Treasuries. But investors remain worried as Spain's wealthy Catalonia region sought central government help as it was running out of options for refinancing debt this year.
Spot gold rose 0.4 percent to $1,580.42 per ounce, its highest level in nearly a week, and traded at $1,577.76 by 0627 GMT. US gold was up half a percent at $1,577.30. In the week ended May 22, speculators cut their net bullish bets on US gold to the lowest level since December 2008 as the rise in short positions outpaced the uptick in longs, data from US Commodity Futures Trading Commission showed. "There is no particular reason to buy gold at this point - oil prices have slumped, the dollar is very strong and we don't see the prospect of more monetary easing from the US Federal Reserve any time soon," a Hong Kong-based dealer said.
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