MW: Gold futures struggle to stay higher as dollar rises
SAN FRANCISCO (MarketWatch) -- Gold futures struggled to hold on to gains Thursday as uncertainty over aid to Greece led some investors to seek bullion as a safe haven, but prices seesawed on a stronger dollar.
Gold for April delivery fell $1.70, or 0.1%, to $1,122.60 an ounce. It earlier rose to a high of $1,127.80 an ounce, up from a settlement of $1,124.20 in the prior session.
Copper and other metals futures also fell.
The SPRD Gold Trust (GLD 109.74, +0.15, +0.14%) , the largest exchange-traded fund backed by gold rose 0.3%. Holdings in the trust remained for the fifth session at 1,115.51 metric tons.
Greece's debt woes are "back in the headlines," helping support gold futures prices, said Peter Buchanan, senior economist at CIBC World Markets in Toronto. Read more on Greece
Plus, "we may be heading for greater trade tensions between the US and China" and also volatility in the currencies market, which could be supportive of higher gold futures prices in the longer term, he added.
Doubts about the euro-zone's aid plan for the debt-strapped Greek government resurfaced amid talk that Greece might resort to help from the International Monetary Fund.
Earlier Thursday, gold rose slightly even as the dollar advanced. A stronger dollar tends to pressure gold, making it more expensive for holders of other currencies and less attractive as a hedge against weaker currencies.
The dollar index (DXY 80.08, +0.44, +0.55%) , which measures the U.S. unit against a basket of six major currencies, rose to 80.01 from 79.734 late in the prior session. The dollar strengthened especially against the euro, which fell about 0.7% to $1.3638. See Currencies
Gold had stayed higher after U.S. reports showed jobless claims fell in the latest week and consumer prices were unchanged in February. See more on jobless claims and See more on consumer prices.
On Wednesday, gold finished slightly higher at the New York Mercantile Exchange as investors cheered the Federal Reserve's prior-session pledge to maintain U.S. interest rates at exceptionally low levels and as the Bank of Japan doubled the scale of its lending programs.
