LONDON--Gold prices were slightly higher on the London spot market Friday as the dollar softened against a range of currencies and Greek bailout talks were put off until the weekend.
Spot gold was up 0.2% at $1,175.05 a troy ounce in morning European trading.
The dollar was down against the euro and sterling, which was good news for the dollar-denominated metal.
More broadly, the yellow metal was up against the backdrop of Greek bailout talks.
Greece has until Tuesday to transfer 1.54 billion euros ($1.72 billion) to the International Monetary Fund, the same day the eurozone portion of its EUR245 billion rescue program expires. Without new financing from its creditors-the IMF, the European Central Bank and the other eurozone governments--Athens won’t be able to afford the payment.
As a safe-haven asset, gold often benefits from such political and economic uncertainty. However, reactions by traders to the Greek crisis have been somewhat muted and any move downward is seen likely to be similarly restrained, should a deal be reached.
“Gold’s apparent lack of interest speaks volumes towards sentiment-- if an 11th-hour deal is agreed then gold may well sell-off. That said, as there has not been much on the upside for gold on the back of [the Greek debt crisis], perhaps there will not be much of a negative reaction,” said William Adams, head of research at Fastmarkets.
Meanwhile, spot palladium hit a fresh two-year low at $674.35 an ounce during the session.
Estimates for global auto sales have been declining, according to analysts. As palladium is predominantly used to reduce emissions in car auto catalysts, this has had a knock-on effect on investor sentiment towards the metal.
