London - Gold rebounded as Greek Prime Minister Alexis Tsipras reaffirmed his government’s rejection of the country’s bailout programme and concern increased that Ukraine’s conflict may worsen, spurring demand for haven assets.
Bullion for immediate delivery added as much as 0.4 percent to $1,239.31 an ounce and was at $1,238.34 at 2.11pm in Singapore, according to Bloomberg generic pricing. Prices fell to $1,228.48 on February 6, the lowest level since January 15, after data showed the US added more jobs than forecast in January, boosting expectations that the Federal Reserve will move toward the first interest-rate increase since 2006.
Greece’s Tsipras vowed to increase the minimum wage and halt infrastructure privatisations on Sunday, putting him on a collision course with creditors before an emergency meeting with euro-area finance ministers. Ukraine’s almost yearlong conflict enters a pivotal week with discussions to resume on Monday in Berlin aimed at preparing a summit for the leaders of Germany, France, Russia and Ukraine in Minsk, Belarus, on February 11.
“It looks Ukraine is going to deteriorate, with both sides threatening to up the ante it would probably give it a little bit of a safe-haven shake,” said David Lennox, a resource analyst at Fat Prophets in Sydney. The standoff in Greece “adds to the same safe-haven story,” he said by phone.
Ukraine, the US and the European Union say Russia is supporting separatists in Ukraine’s east. Almost 5 400 people have died in the fighting since April, according to the United Nations. This week’s diplomatic effort comes as the US and some European allies consider supplying arms to Ukraine.
Tsipras is seeking to keep Greece afloat while breaking free from the bailout amid doubts about the country’s ability to pay its bills, with coffers running empty possibly this month. Alan Greenspan, the former Fed chairman, said that Greece’s exit from the euro is just a matter of time.
Gold for April delivery rose 0.3 percent to $1,238.30 an ounce on the Comex in New York. The price lost 2.2 percent on Friday after the US payrolls data, taking declines last week to 3.5 percent.
Silver for immediate delivery increased 0.2 percent to $16.7572 an ounce. Prices dropped to $16.5634 on February 6, the lowest since January 14. Spot platinum added 0.3 percent to $1,226.75 an ounce, while palladium fell 0.2 percent to $783 an ounce.
Bloomberg