Forexpros - Gold futures eased down on Monday, adding to last week’s steep loss, as investors monitored developments surrounding Greece’s debt swap deal as well as growing geopolitical tensions between Iran and the West. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,708.25 a troy ounce during early European morning trade, easing down 0.09%. The April contract traded in a tight range of USD1,717.65 a troy ounce, the daily high and USD1,707.35, the session’s low. Gold futures were likely to find support at USD1,689.95 a troy ounce, the low from February 29 and short-term resistance at USD1,726.95, the high from March 1. Gold prices lost 3.45% last week as traders unwound long positions, or bets prices will rise, after Federal Reserve Chairman Ben Bernanke diminished expectations for more U.S. monetary easing last week. Concerns over Greece’s debt burden persisted ahead of the March 8 deadline for bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal. There is uncertainty over how much participation Greece will see for its bond swap. At least 66% of private sector bondholders must be willing to participate in the deal. A failure to agree on the swap would put the country back on the brink of a messy sovereign debt default. Fresh concerns over Spain’s fiscal health also added to the cautious mood. Spain’s government raised its budget deficit target to 5.8% of gross domestic product for 2012, compared to a previous target of 4.4% on Friday, sparking concerns over the viability of the European Union’s new fiscal treaty. Prices found support as markets continued to focus on growing geopolitical tensions between Iran and Western powers. In a speech Sunday, U.S. President Barack Obama said he would not hesitate to attack Iran to keep it from getting a nuclear bomb. His comments come ahead of a meeting with Israeli Prime Minister Benjamin Netanyahu in Washington DC later Monday. The two countries have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing. Gold is often considered a haven against political turmoil and as a hedge against oil-led inflation. In the near-term, global financial service provider HSBC Holdings sees further downside to gold prices, citing the metal’s inability to clear USD1,800 an ounce and the paucity of emerging-market buying in recent weeks. In the longer term, however, the bank expects prices to remain well-supported “even without further easing, as monetary policy is still highly accommodative.� Elsewhere on the Comex, silver for May delivery was flat to trade at USD34.53 a troy ounce, while copper for May delivery dipped 0.4% to trade at USD3.888 a pound.

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