Gold prices edged up on Monday after Greece deal on coalition

Gold prices edged up on Monday, reversing minor losses in the previous session, after Greece’s politicians sealed a deal to form a coalition government to approve a euro zone bailout critical to averting default.

Spot gold gained 0.3 percent to $1,758.24 an ounce by 0018 GMT, after rising 0.8 percent in the previous week.

U.S. gold also edged up 0.3 percent to $1,760.50.

Greece’s politicians agreed on Sunday to form a unity government to approve a euro zone bailout, with Prime Minister George Papandreou due to step down to break an impasse after the EU demanded its parties join forces to avert bankruptcy

While fears on Greece eased after the coalition government plan, euro zone’s trouble is far from over. Italian Prime Minister Silvio Berlusconi has one day left to win over waverers and see off a group of party rebels threatening to bring down his government in a backlash over its failure to adopt reforms to defuse a dangerous debt crisis.

Money managers, including hedge funds and other large speculators, raised their bullish bets in gold futures and options in the week to Nov. 1 as the price of bullion surged to its highest in five weeks, above $1,750 an ounce, data on Friday showed.

Holdings of the SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund, gained 1.513 tonnes on the day to 1,245.064 tonnes by Nov. 4, highest in more than a month.

U.S. stock index futures opened higher on Sunday as the Greek government agreed on a new coalition government to approve the euro zone bailout deal.

The euro was steady against the dollar on Monday after the Greek deal to form a coalition government. – Reuters

Posted by admin on Nov 8 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry