PT. Equityworld Futures – Gold headed for the first weekly climb in a month as the International Monetary Fund’s decision to walk out of talks with Greece on financial aid outweighed the outlook for higher U.S. interest rates.
Bullion for immediate delivery traded at $1,182.22 an ounce by 2:20 p.m. in Singapore from $1,182.01 on Thursday, when prices fell 0.3 percent, according to Bloomberg generic pricing. The metal is set to advance 0.9 percent this week, the first weekly gain since the period ended May 15. Gold in Shanghai was little changed, set for a weekly increase.
The IMF said its team flew out of Brussels after failing to make progress on a debt deal needed to help Greece avoid default. European Union President Donald Tusk abandoned his neutral position as a broker of EU compromises, telling Greece’s Prime Minister Alexis Tsipras to stop maneuvering and decide whether to accept the conditions on financial aid. The standoff has fueled concern that Greece will exit the euro area, boosting bullion’s appeal has a haven.
Gold has dropped almost 10 percent from this year’s peak in January amid speculation the U.S. Federal Reserve will raise borrowing costs for the first time since 2006 as the economy improves. Higher rates drive investors to favor assets that pay interest, curbing the allure of the metal.
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