SINGAPORE: Gold hovered near $1,560 an ounce on Thursday, remaining on shaky ground as worries about Greece and the Eurozone continued to dominate market sentiment after a European Union summit yielded few practical steps to manage the debt crisis.
Gold, typically a safe-haven option, has been moving in tandem with riskier assets as the Eurozone debt problem grinds on. Senior officials have advised European leaders to prepare contingency plans in case Greece quits the single currency, although the EU urged Athens to stay the course on austerity.
Light buying in the physical market emerged when prices fell towards a key support level near $1,530 in the previous session, but selling trickled in as prices rebounded. “Clients are not too interested in entering the market right now,” said a Singapore-based dealer.