Gold prices edged up along with crude oil and the euro on expectations the Greek prime minister's presence in Brussels Thursday signals a likelihood his nation will receive desperately needed bailout money.
Prime Minister Evangelos Venizelos left Greece Thursday after an all-night meeting with coalition partners that failed to achieve complete agreement on how much more austerity to impose on the debt-choked, strife-torn country. Participants differed on how much to cut pensions.
Without some $170 billion in rescue funds from a combination of the International Monetary Fund, the European Commission and the European Central Bank, Greece will default on a bond redemption next month.
The talks have been completed. Most issues have been resolved, one issue remains to be clarified, a Greek a government official told the Wall Street Journal. We are going to the euro group to close the agreement.
Such expectations, along with two surprising economic reports -- British manufacturing in December rising unexpectedly and China's January inflation increasing more than anticipated -- lifted European stocks, the Eurozone's single currency and such key commodities as crude oil.
The euro climbed, at the dollar's expense, to $1.328 and crude oil came within a fraction of $100 per 42-gallon barrel.
Uncertainty about Greece and the Eurozone has kept a number of securities in a narrow range lately. Gold has been range-bound since Jan. 26, a trend that may continue.
Gold is likely to remain in a sideways mode for a while between $1,700 and $1,800, unless we see any big surprise that could indicate a clear direction, Hou Xinqiang, an analyst at Jinrui Futures in the southern city of Shenzhen, told Reuters.
Gold for April delivery rose $3.90 to $1,735.70, while gold for immediate delivery was off 72 cents to $1,731.51.
Silver for March delivery added 23 17 cents to $33.87, while silver for immediate delivery slipped 12 cents to $33.81.