Gold Rallies to $1233 on Weaker Dollar

Gold rose for a third straight session on Monday, as the dollar weakened before a meeting of euro zone finance ministers on how to proceed with Greece’s bailout programme.  Spot gold rose 0.3 percent to $1,233.60 an ounce by 1059 GMT, while U.S. gold for April delivery was up $6.10 at $1,233.20 an ounce.

Liquidity is seen thinning through the day due to a national holiday in the United States.  Spot gold posted its third weekly drop last week, undermined by bearish investor sentiment and prospects of higher U.S. interest rates.

“Gold recovered last Friday after disappointing U.S. data and it is relatively well supported, given the still ongoing risks in Greece,” Commerzbank analyst Daniel Briesemann said.


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