GOLD futures bounced from losses as participants were bullish on the metal after recent gains, but it settled only marginally higher as a stronger greenback kept any gains in check.
Most-actively traded June gold rose US70 cents, or 0.06 per cent, to settle at $US1160.30 an ounce on the Comex division of the New York Mercantile Exchange. Thinly traded nearby April gold also rose US70 cents, or 0.06 per cent, to $US1159.70.
Shortly after gold closed, the ICE Futures US Dollar Index was up 0.345 point, or 0.4 per cent, at 80.535 points. A stronger US dollar often pressures dollar denominated gold by making it more expensive for buyers using other currencies, hurting demand.
The US dollar was helped after Greece lowered the amount it expects to raise from a dollar-denominated bond it plans to issue later this month, according to two government officials, and could even drop the bond altogether if US investors express little interest in Greek debt.
That weighed on gold earlier in the session, but the metal was able to recover on optimism that it is in an upward trend, with bullish technical momentum acting as a tailwind, said Michael Gross, broker and futures analyst with OptionSellers.com.
Weaker-than-expected US jobless numbers also weighed on gold as an inflation hedge, said Country Hedging analyst Sterling Smith.
The Labor Department said in its weekly report that initial claims for jobless benefits rose by 24,000 to 484,000 in the week ended April 10, compared with economist expectations for a decrease of 15,000.
But that pressure gave way to some support for the metal on safe-haven buying amid the worries about Greek debt, Mr Smith said.
"People want to get away from currencies," he said.
Silver futures settled marginally higher. Comex May silver gained US1.8 cents, or 0.1 per cent, to settle at $US18.433.
Platinum group metals futures declined slightly on some profit-taking.
Nymex July platinum fell $US7.90, or 0.5 per cent, to settle at $US1726.30 an ounce while June palladium on the exchange dropped $US2.10, or 0.4 per cent, to settle at $US545.90 an ounce.
But "the underlying bullish sentiment still exists," says a trader who can't be named because he's not authorised to speak with the media. There are industrial buyers who are purchasing the metal in hopes of getting into the market before prices go even higher, the trader says.
