Gold rose in the early morning US trade as the meeting between eurozone finance ministers and Greek government officials made little progress.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last up $10.90 at $1,185.90 per ounce. Trade has ranged from $1,177.60 to $1,187.10.
“Last Friday’s meeting of Eurogroup finance ministers, which focused on Greece among other things, yielded no results. Although it would appear that the Greek government was harshly criticized by the other finance ministers, no further concrete steps were agreed,” Commerzbank said in a report.
“There is likely still to be considerable speculation on the markets about how long Greece will continue to be solvent, so demand for gold should remain solid,” the report continued.
Market optics will shift to the Federal Open Market Committee (FOMC) meeting on April 29, which should produce evidence exactly when the FOMC will decide to raise interest rates.
A delay in raising rates till September should provide strong footing for gold, even with a strengthening dollar.
The dollar was up 0.3 percent at 1.0841 against the euro.
Inflation and slack in the labour market are the two factors that will guide the Fed’s hand in normalising monetary policy. Any move towards higher interest rates will raise the opportunity cost of holding gold and push investors into more yield-bearing assets such as bonds.
Meanwhile, in Europe equity markets, Germany’s DAX and France’s CAC-40 were both up 1.7 and 0.9 percent respectively.
In data, German import prices at 1.0 percent were better than forecast, while later today will seee US flash services PMI, which is expected at 59.1.
As for the other precious metals, Comex silver for May delivery was up 30.4 cents at $15.940 per ounce. Trade has ranged from $15.68 to $16.
Platinum for June delivery on the Nymex rose $8.40 to $1,129.80, while the most actively traded palladium contract was at $779.70, up $9.45.
Light sweet crude (WTI) futures increased 22 cents or 0.4 percent at $57.37 per barrel in the most active contract.
(Edited by Tom Jennemann)
The post Gold prices up amid no Greece resolution, FOMC upcoming appeared first on The Bullion Desk.
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