Gold prices rose above $1,200 on the Chicago Mercantile Exchange amid a lack of a resolution to the Greek debt crisis and expectations that the Federal Open Market Committee (FOMC) will delay raising interest rates.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last up $27.10 or almost 2.3 percent at $1,202.10 per ounce. Trade has ranged from $1,1202.30 to $1,177.60.
Greece could default on its debts unless a deal can be brokered with its creditors. Talks continue this week; eurozone finance ministers at a summit last week lambasted Greek counterpart Yanis Varoufakis for a lack of progress in critical reforms needed to secure funding.
The slow progress has burnished gold’s safe-haven qualities although news that Athens has reorganised its negotiating team has provide some pep to riskier assets.
In the US, the FOMC will start a meeting at which it will discuss normalising US monetary policy. The Fed’s policy board is locked in a debate on when to raise interest rates, which have been near zero since December 2008.
(Editing by Mark Shaw)
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