Gold Snaps 5-Day Loss To End Higher On Greek Uncertainties

(RTTNews) - Gold futures snapped a five-day loss to end higher Monday, on its safe haven appeal with investors concerned over Greece's continued financial troubles and its ability to fund itself in the near future. Eurozone finance ministers are scheduled to meet in Brussels later today to discuss the beleaguered country's new list of reform measures.

Gold gained on the uncertainties surrounding Greece's new list of reforms which will be considered by eurozone finance ministers in a meeting in Brussels later today. Nonetheless, it is speculated the meet is unlikely to reach a decision on approving the Greek proposals, which is crucial for the country to access further creditor support.

Greek Prime Minister Alexis Tsipras last Friday sent a prepared list of reforms to Eurogroup Chairman, Dutch Finance Minister Jeroen Dijsselbloem in order to unlock aid funds from euro area lenders. The list of seven measures is said to have tax avoidance steps and scanning public documents.

Last month, Greece wriggled out of a tight situation with a temporary agreement with lenders for an extension to its bailout by four months. At that time, Greece agreed to complete a bailout review by April prior to getting any further financial aid.

Gold for April delivery, the most actively traded contract, gained $2.20 or 0.2 percent to settle at $1,166.50 an ounce, on the Comex division of the New York Mercantile Exchange on Monday.

Gold for April delivery scaled an intraday high of $1,174.40 and a low of $1,166.00 an ounce.

On Friday, gold ended at $1,164.30 an ounce, down $31.90 or 2.7 percent, as the dollar trended higher and on some robust U.S. jobs growth with expectations the Federal Reserve will hike interest rates mid-year.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 756.32 tons from its previous close of 760.80 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 97.60 on Monday, down from its previous close of 97.81 on Thursday in late North American trade. The dollar scaled a high of 97.78 intraday and a low of 97.29. The dollar scaled its highest intraday in the last one year.

The euro trended higher against the dollar at $1.0861 on Monday, as compared to its previous close of $1.0842 on Friday in late North American trade. The euro scaled a high of $1.0908 intraday and a low of $1.0837, the lowest in the last one year.

On the economic front, China's trade surplus rose to a record high in February as exports surged due to the effect of the timing of the Lunar New Year, figures from the customs office showed Sunday. The trade surplus came in at $60.6 billion in February, much more than the $6 billion expected by economists.

Japan's gross domestic product expanded just 1.5 percent on year in the fourth quarter of 2014, the Cabinet Office said in Monday's revised reading. That was well shy of forecasts for 2.2 percent, which would have been unchanged from the February 15 preliminary reading.

Eurozone investor confidence reached its highest level since August 2007, survey data from the think tank Sentix showed Monday. The investor confidence index for March rose to 18.6 from 12.4 in February. This was the highest score since August 2007.

Germany's exports declined at the fastest pace since August although a weaker euro is likely to boost shipments in months ahead. Exports dropped by a worse-than-expected 2.1 percent month-on-month in January, reversing December's revised 2.8 percent increase, data from Destatis revealed Monday. It was severe than a 1.5 percent fall forecast by economists.

Meanwhile, the Bank of France lowered its economic growth forecast for the first quarter even as business confidence in the manufacturing sector deteriorated, a survey report from the bank showed Monday. The central bank cut its first-quarter growth forecast for the French economy to 0.3 percent from 0.4 percent seen earlier. Preliminary data showed that the French economy grew 0.1 percent in the final three months of 2014.

The Organization for Economic Cooperation and Development said the leading index signaled stable growth momentum in the region and positive development in the euro area. The composite leading indicator increased to 100.4 in January from 100.3 in the previous month, the OECD said Monday.