Gold rose for a third straight session on Wednesday, helped by a softer dollar and worries over the Greek debt crisis, but a looming US interest rate increase and outflows from bullion-backed funds continued to weigh on the market. Spot gold climbed 0.5 percent to $1,181.74 an ounce at 0707 GMT after gaining 0.4 percent in the previous two sessions. The metal fell to $1,162.35 on Friday, its lowest since March 19, after a strong US nonfarm payrolls report.
"Bullion found support from renewed Greek debt concerns," said HSBC analyst James Steel. "That said, Greek exit concerns have clearly had a less robust impact on gold than during the earlier periods of 'Grexit' concerns." A planned meeting between the leaders of Germany, France and Greece on Wednesday was in doubt as Greece's reform proposals to unlock new funding to ward off a debt default fell well short, European Union officials said. Gold was also helped by a slide in the dollar in reaction to a comment from the Bank of Japan governor that the yen was "very weak". Capping gold's gains were outflows from exchange-traded funds (ETFs).
Comments
Comments are closed.