Gold Recovers on Greek Hope Rises

Gold scaled higher on Friday, moving further away from a four-month low, as the euro rose on signs of progress in debt-hit Greece’s efforts to secure fresh funding.

But weak physical demand in top consumers China and India capped price gains, with gold still sold in India at a discount to the global benchmark.

“Gold may remain weak in the near term at least until physical buyers resurface, in our view,” said HSBC analyst James Steel.

Spot gold was up 0.3 percent at $1,162.71 an ounce by 0629 GMT. Prices are still down marginally for the week, after touching $1,146.75 on Wednesday, its lowest since March 18.

U.S. gold for August delivery gained 0.2 percent at $1,161.80 an ounce.

The Greek government sent a package of reform proposals to its euro zone creditors on Thursday in a race to win new funds to avert bankruptcy and will seek a parliamentary vote on Friday to endorse immediate actions.

The euro climbed against the dollar on the news, making dollar-denominated assets such as gold cheaper for buyers using other currencies.

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