Gold Prices up as Greek PM Heads to Brussels

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.