Gold shed early gains on Monday but was still supported by debt crisis woes in Europe after the region's ministers delayed a decision on emergency loans to Greece, while bullion priced in sterling struck a lifetime high. Eurozone finance ministers postponed to July a final decision on extending a further 12 billion euros ($17 billion) in emergency loans to Greece, saying Athens would first have to introduce harsh austerity measures.
Spot gold was hardly changed at $1,537.49 by 0727 GMT, having risen above $1,541 on Friday - its biggest one-day gain since May. Gold is still below a lifetime high around $1,575 touched in early May. Investors await the Fed's Open Market Committee's announcement on interest rates on June 22, which could squeeze the dollar. "Investors will be trying to see how far or how high the bar for the next round of quantitative easing will be. If this bar is actually lowered, then I think it will be beneficial for gold," said Ong Yi Ling, investment analyst at Phillip Futures. Silver hardly moved at $35.56 an ounce, below a record at $49.51 an ounce in April.
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