Gold prices hovered Friday near six-week highs as Greece's prime minister awaited a no-confidence vote sparked by his sudden proposal for -- and just as sudden withdrawal of -- a referendum on accepting bailout money.
George Papandreou's surprise call earlier this week to have Greek citizens vote on whether to accept $180 billion in bailout money along with yet more budget cuts outraged European leaders, weary after a two-year struggle to help Greece out of its sovereign debt crisis. Even members of his cabinet denounced the idea.
On Thursday Papandreou dropped those plans but was still facing a no-confidence vote. Hanging in the balance was not just his status as head of state but whether Greece will remain in the Eurozone.
The uncertainty was keeping many buyers and sellers on the sidelines, though safe-haven investors kept gold from falling significantly.
There's a lot of uncertainty, a lot of potential, for further upheaval over the weekend, said William Adams, head of research at FastMoney.com. That is providing some safe-haven buying into gold.
Adams sees a floor on gold prices around $1,700, or perhaps $1,750 with initial upside resistance emerging around $1,768 or $1,770 and then another level of resistance at $1,825.
Gold for December delivery on the Comex fell $5.10 to $1,760, while gold for immediate delivery rose $20.59 to $1,755.40.
Silver for December delivery slipped 39 cents to $34.11, while silver for immediate delivery added 27 cents to $34.10.