Gold prices rose 1 percent on Thursday as the euro rallied to a fresh two-month high against the dollar after Greece clinched a deal with European Union and IMF leaders needed to avoid a messy default.
Following days of exhausting political drama, high-level brinkmanship and stern rhetoric in both public and private statements, the red-eyed leaders of Europe's leading financial institutions reached a deal Thursday with Greece's governing coalition to impose further austerity measures on that country in exchange for a €130 billion bailout ($172.56 billion).
Greek leaders clinched a long-stalled deal on reforms and austerity measures needed to secure a bailout and avoid a messy default, government sources said, hours before the country's financial backers were to meet in Brussels on Thursday. The euro and European stocks strengthened on news of the breakthrough.
The European Central Bank held interest rates at a record low on Thursday, seeing tentative signs of economic stabilization, but refused to say what part it might play in averting a ruinous Greek default.
The European Central Bank left interest rates unchanged on Thursday and financial markets' attention will now shift to whether the bank is ready to help Greece avoid a messy default.
Gold 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.
European stock markets opened with gains Thursday as investors anticipate a successful resolution to the Greek debt deal that would allow the eurozone country to avoid a default.
Asian shares and the euro struggled Thursday, as sentiment grew cautious after Greek political leaders failed to conclude a deal for a bailout package crucial to avoiding a messy debt default.
Japan's Nikkei average eased from a three-month high to trade below 9,000 Thursday amid uncertainty over the outcome of the Greek bailout talks.
Greek political leaders failed early on Thursday to sign off on a tough reform and austerity program, the price of a new international bailout for the nation, but Prime Minister Lucas Papademos said they would try to strike a deal within hours.
Stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.
Stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.
Global securities, whether stocks, commodities or currencies, held earlier gains or losses Wednesday as the world awaited the outcome of talks between debt-choked, strife-torn Greece and benefactors demanding more tax hikes and government budget cuts in exchange for bailout money.
Stocks gave up early gains on Wednesday as the Dow hovered at its highest level in nearly four years and investors waited for Greece to accept tough reforms in exchange for a new bailout.
Greek parties will try on Wednesday to agree to a reform deal in return for a new EU/IMF rescue to avoid a chaotic default, after repeated delays which have prompted warnings that the euro can live without Athens.
Gold prices hovered in a narrow range Wednesday, with little support from crude oil prices or the euro and uncertainty about whether Greece will accept slightly easier bailout terms from Eurozone leaders, known collectively as the troika.
Leaders of the three parties in Prime Minister Lucas Papademos's coalition postpone crunch meeting.
U.S. stocks rose modestly Tuesday as strong earnings from Coca-Cola Co. and Yum! Brands Inc. offset concerns that Greece would default next month on a $19 billion euro bond redemption. European and Asian stocks were mixed, reflecting similar concerns.
Greek political parties delayed yet again on Tuesday making the tough choice of accepting painful reforms in return for a new international bailout to avoid a chaotic default, seemingly deaf to EU warnings that the euro zone can live without Athens.
Greek officials Tuesday missed yet another deadline to agree to conditions for receiving $170 billion in bailout money, a particularly disappointing development as Athens had appeared earlier in the day to be close to a final deal.
The leaders of the three national parties in Greece's coalition government will meet the Prime Minister, Lucas Papademos to discuss the terms of the proposed bail-out plan.
Asian markets edged up on Tuesday even as Greek resistance to the strict conditions attached to a bailout fund sapped recent momentum and the euro eased on renewed fears of a messy debt default.
