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.