Gold Slightly Higher All Eyes on Greece

Gold edged up on Thursday, after sliding for the past four sessions to a two-week low, with investors awaiting news on Greece’s talks with its international lenders to avert a default for further trading cues.

Asian shares edged down on Thursday and the dollar eased, with investors on ice ahead of a meeting of European Union leaders later in the session as Greece continued last-minute efforts to avert a default.

“Gold looks to range trade between $1,169-$1,180 over the short term with the risk to the downside should positive news come out of the Greek debt negotiations,” Samuel Laughlin, a metals dealer at MKS Group said in a note.

Spot gold rose 0.2 percent to $1,176.80 an ounce by 0708 GMT, after dropping 2.2 percent in the past four sessions. Prices fell to a two-week low of $1,171.03 on Wednesday.

Gold, which is seen as a safe haven during times of financial and economic uncertainties, is facing additional pressure from a stronger dollar and expectations of a U.S. interest rate increase.

The dollar steadied after giving back gains against the yen early as debt negotiations to avert a Greek debt default hit a bump, while the euro treaded water after showing a more limited response.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza