Gold Remains Below $1265 as Greek Pledge Curtails Haven Demand

Gold held two days of losses after the Greek government dropped a call for a debt writedown, easing concern that the country will abandon the euro and cutting demand for haven assets.

Bullion for immediate delivery fell and rose at least 0.2 percent, and traded at $1,262.80 an ounce at 12:08 p.m. in Singapore from $1,260.52 on Tuesday, when prices fell as much as 1.5 percent, according to Bloomberg generic pricing. The metal extended Monday’s 0.7 percent loss as Greece’s new government retreated from a plan to ask euro-area countries to write down its debt, and oil prices rebounded.

Gold advanced 8.4 percent in January, in part as uncertainty over Greece’s membership of the euro zone helped to fan haven demand. While the Federal Reserve is moving toward raising borrowing costs, central banks from Europe to Asia are acting to counter slower growth and deflation. Data this week may show U.S. employers continued to add workers in January and provide clues on the timing of U.S. rate increases.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.