Singapore: Gold edged up on Thursday, after sliding for the past four sessions to a two-week low, with investors awaiting news on Greece`s talks with its international lenders to avert a default for further trading cues.
Asian shares edged down and the dollar was treading water ahead of a meeting of European Union leaders later in the session as Greece continued last-minute efforts to stave off default.
"Gold looks to range trade between $1,169-$1,180 over the short term with the risk to the downside should positive news come out of the Greek debt negotiations," Samuel Laughlin, a metals dealer at MKS Group said in a note.
Spot gold rose 0.1 percent to $1,176.35 an ounce by 0248 GMT, after dropping 2.2 percent in the past four sessions. Prices fell to a two-week low of $1,171.03 on Wednesday.
Gold, which is seen as a safe haven during times of financial and economic uncertainties, is facing additional pressure from a stronger dollar and expectations of a U.S. interest rate increase.
The dollar steadied after giving back gains against the yen early as debt negotiations to avert a Greek debt default hit a bump, while the euro treaded water after showing a more limited response.
Athens` talks with creditors bogged down on details, with next week`s deadline to repay 1.6 billion euros to the International Monetary Fund looming and threatening to trigger the country`s removal from the euro zone.
The outlook for the dollar, however, remained upbeat amid expectations U.S. interest rates in the world`s largest economy would rise sooner than later.
Speculation that the U.S. Federal Reserve will raise rates for the first time in nearly a decade has weighed on gold prices this year. Higher rates lift the opportunity cost of holding non-yielding bullion.
Wednesday`s data on U.S. gross domestic product confirmed the improving outlook. The final figure for the first quarter showed contraction in the economy was less than previously estimated.
Reuters
First Published: Thursday, June 25, 2015, 10:52