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Gold strengthens in dull trade, eyes on Greece

SINGAPORE : Gold rose more than half a percent on Monday, tracking Tokyo futures higher in thin trade, but gains could
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Investors are waiting for euro zone ministers to decide later in the day what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens.

Gold rose 0.62 percent to $1,667.99 an ounce by 0237 GMT as gains on Tokyo futures spilled into the cash market. Gold has risen more than 6 percent so far this year, but stayed below a lifetime high of around $1,920 hit last September.

Overall trading was slow in Asia because physical markets in China, Singapore, Malaysia and Indonesia were closed for the Lunar New Year break.

"There's a little bit of buying, that's why we see a change in price trend. We've seen physical buying from the general public," said a dealer in Tokyo, referring to private investors.

The most active gold contract on the Tokyo Commodity Exchange, December, added 23 yen a gram to 4,138 yen after rising as high as 4,143 yen a gram, its strongest since

mid-December.

 

Copyright Reuters, 2012