June 20, 2011, 2:31 p.m. EDT
Gold edges up on euro-zone woes
Metal spends most of day toeing line between small gains, losses
By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures inched higher Monday as investors remained concerned about debt-stricken Greece, but a stronger dollar, lower prices for energy and other commodities and thin trading kept gains modest.
Gold for August delivery GC1Q +0.03% added $2.90, or 0.2%, to $1,542 an ounce on the Comex division of the New York Mercantile Exchange. It had traded as low as $1,533.60 earlier.
The metal spent most of the session flip-flopping between small gains and losses amid low volume.
Silver tracked gold’s trajectory, rebounding from earlier losses. The July contractSI1N -0.21% advanced 32 cents, or 0.9%, to $36.07 an ounce.
Gold is likely to remain rangebound for the next two months, said James Cordier, a portfolio manager with Optionsellers.com in Florida.
The situation with Greece and discussions about the U.S. debt ceiling “are all extremely bullish for gold,” Cordier said. “At the same time, it is completely losing its hedge against inflation” as oil and other commodities have fallen in recent days, he added.
A firmer dollar weighed on prices Monday, but gold ticked higher after the U.S. unit moderated its gains versus the euro and other major currencies, ahead of a Greek vote Tuesday that could pave the way for the nation to get another round of bailout funds.
The dollar index DXY -0.19% , which measures the performance of the U.S. unit against a basket of six other currencies, came off its highs, recently trading lower at 74.986 from 75.092 late Friday. Read more about currencies.
European Union finance ministers didn’t agree on a common solution to the debt situation in Greece at a meeting in Brussels over the weekend.
“Price-wise, most commodities will be moving lower over the course of June, weighed down by the euro-crisis and the bid that the dollar will receive as a result,” analysts at MF Global said.
http://www.marketwatch.com/story/gold-silver-retreat-as-dollar-gains-2011-06-20
Greece emergency loan delayed
Euro-zone finance ministers postpone final decision on emergency loan to Greece until it introduces controversial austerity measures.
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