Gold Rallies Above $1220 as Greek Talks Reach Impasse

Gold rebounded from the lowest level in a month as European leaders failed to agree on Greece’s bailout program after talks in Brussels.

Bullion for immediate delivery rose as much as 0.4 percent to $1,223.57 an ounce and traded at $1,223.35 at 9:35 a.m. in Singapore on Thursday, according to Bloomberg generic pricing. Earlier, bullion fell to $1,215.30, the lowest level since Jan. 9, after the dollar advanced to 10-year high.

Gold climbed 3.3 percent this year as the Greek crisis and more stimulus in Europe and Asia offset the impact of a stronger dollar and prospects for higher U.S. rates. Euro-region finance ministers failed at the meeting to reach an agreement on how to keep bailout funds flowing to Greece and are set to resume talks next week. The impasse risks leaving Greece without funding by the end of this month, when the current bailout expires.

Bloomberg

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