Gold little changed, eyes on Greece

Gold is little changed on Tuesday trading with eyes on the Greek debt woes after Jean-Claude Junker, who heads the euro-area finance ministers ruled out the possibility of total restructuring for Greek debt.

Speculations are increasing that European officials may approve new bailout for Greece to prevent a possible default and calm markets down.

Trading in market is still within narrow range as investors start to come back gradually to market after subdued trading yesterday due to public holidays in the US and UK.

In the previous session, gold added $2.60 or 0.17% after closing at $1538.54 an ounce.

Gold inched up yesterday on mounting debt woes from Greece as Greek Prime Minister George Papandreou failed to get the approval of opposition parties with regard extra austerity measures, called for by European officials, that include additional 6 billion euros of budget cuts as well as 50 billion euros of state-asset sales plan, yet Papandreou said that he will adopt the new austerity measures despite the rejection of opposition.

By extension, the precious metal was not affected by the dollar's slight rebound yesterday.

The dollar dropped today against a basket of major currencies as the dollar index fell to 74.50 compared with the day's opening level of 74.92.

Spot gold is traded at $1539.25 an ounce after reaching a high of $1540.55 and a low of $1534.40.

Among other precious metals, sliver edged up to $38.60 from the day's opening of $38.09, platinum rose to $1815.00 from $1803.20 and palladium slipped to $767.20 from $759.20, as of 08:55 GMT.