In early European trade, gold was broadly flat on the day at $1,190 per troy ounce.
Gold prices were trading in a narrow range in Asian trade. The precious metal has largely been taking cues from the expected timing of Federal Reserve’s interest rate increase. Data issued late last week showed the U.S. GDP fell 0.7% in the first quarter, which traders are interpreting to mean that a rate increase may come only late this year. However, the dollar has held steady resulting in little price impact on gold as the two typically have an inverse relation with each other. “The only trigger for gold could be Greece, if it signals a debt default,” says Gnanasekar Thiagarajan, director of Commtrendz Research. Investors typically buy the precious metal during times of geo-political uncertainty. Spot gold is currently trading up 65 cents at $1,190/oz.
