Six-week run for gold

February 16, 2015 10:51 AM

 Gold gained for a third day, the longest run of advances in almost six weeks, as euro-area finance ministers prepared to meet amid an impasse over Greece’s financing.

Greek Finance Minister Yanis Varoufakis leads a delegation to Brussels on Monday after weekend discussions aimed at identifying common ground failed to make sufficient progress. While Greece wants a six-month bridge arrangement to replace the current bailout and allow time to discuss a new deal, creditors say Alexis Tsipras’s government must abide by agreements struck by previous Greek administrations.

“The ongoing discussions surrounding Greece and the possibility that there could be problems in resolving them are supporting the gold price,” Thorsten Proettel, a commodities analyst at Landesbank Baden-Wurttemberg, said by phone from Stuttgart.

Bullion for immediate delivery rose as much as 0.6% to $1,236.70 an ounce and was at $1,232.19 by 12:50 p.m. in London, according to Bloomberg generic pricing. Gold for April delivery was 0.4% higher at $1,231.70 on the Comex in New York. U.S. markets are closed for a holiday Monday.

Gold rose 4% this year after posting two years of losses. Proettel said traders will probably focus this week on the outlook for U.S. interest rates, with the Federal Reserve set to release minutes of its January meeting on Feb. 18.

Holdings in exchange-traded products fell for a fourth day as of Feb. 13, declining 3.2 metric tons to 1,670.7 tons, data compiled by Bloomberg show. That capped the first weekly drop in a month after assets reached a four-month high on Feb. 9.

Silver for immediate delivery fell 0.4% to $17.2949 an ounce in London. Platinum rose 0.3% to $1,211.13 an ounce, while palladium declined 0.6% to $786.50 an ounce.

About the Author