Gold rises first time in three days as Greek talks reach impasse
Euro-region finance ministers didn't reach an agreement on how to keep funds flowing to Greece and are set to resume talks next week
London: Gold rose for the first time in three days as European leaders failed to agree on Greece’s bailout program after talks in Brussels.
Euro-region finance ministers didn’t reach an agreement on how to keep funds flowing to Greece and are set to resume talks next week. The impasse risks leaving the region’s most-indebted nation without funding by the end of this month, when the current bailout expires.
Eurogroup chairman Jeroen Dijsselbloem said that while the ministers covered a lot of ground, they didn’t reach a joint conclusion on how to take the next steps. A Greek official said that no agreement had been made and that the government won’t accept an extension of the existing funding program.
“It makes sense to hold gold as a short-term investment at least until the outcome of these negotiations is known," said David Jollie, an analyst at Mitsui & Co. Precious Metals Inc. “Although we expect Greece to remain within the euro and for some accommodation to be found between the two sides, this is a very clear risk event."
Bullion for April delivery added 0.3% to $1,222.70 an ounce by 7:31am on the Comex in New York. It pared gains of as much as 1.1% earlier in the day. Gold for immediate delivery increased 0.4% to $1,223.14, according to Bloomberg generic pricing.
Gold prices rose earlier on Thursday after more stimulus from the Swedish central bank. The Riksbank lowered its repo rate to minus 0.10% from zero and said it will also make policy “more expansionary" by soon buying 10 billion kronor ($1.2 billion) in government bonds with maturities of one to five years.
The Bloomberg Dollar Spot Index slipped 0.4% after closing Wednesday at the highest since at least December 2004.
Silver for March delivery gained 0.4% to $16.82 an ounce in New York. Platinum was 0.6% higher at $1,203.60 an ounce. Palladium climbed 0.9% to $773.65 an ounce. Bloomberg
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!