Investing.com - Gold bounced off the previous session's five-week low on Thursday, after talks between Greece and its European partners failed to reach agreement on a way forward to allow Athens to get a needed funding program in place before the end of the month.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery tacked on $7.50, or 0.61%, to trade at $1,227.10 a troy ounce during European morning hours. Prices held in a range between $1,216.60 and $1,232.70.
A day earlier, gold hit $1,216.50, the lowest level since January 9, before settling at $1,219.60, down $12.60, or 1.02%, as a broadly stronger U.S. dollar weighed.
Futures were likely to find support at $1,208.70, the low from January 9, and resistance at $1,238.70, the high from February 11.
Also on the Comex, silver futures for March delivery picked up 12.7 cents, or 0.76%, to trade at $16.88 a troy ounce. Silver slumped 11.2 cents, or 0.66%, on Wednesday to end at $16.76.
Market sentiment remained subdued after talks between Greece and European Union officials ended without an agreement, though both sides said there was still hope for a deal. Further talks are due to be held next Monday.
Greece’s current bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.
Athens has proposed an overhaul of 30% of its massive bailout deal, replacing it with a 10 point plan of economic reforms.
However, Greece’s creditors in the EU are insisting that the country must stick to the terms of the original bailout agreement.
Meanwhile, ongoing expectations for the Federal Reserve to start raising interest rates by mid-2015 capped gains.
Prices have been under pressure in recent sessions amid the growing possibility of an earlier Fed rate hike, following last week's robust U.S. jobs report, which saw market players bring forward expectations for the first rate increase to June.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
On the data front, the U.S. was to produce its weekly report on initial jobless claims in addition to data on retail sales later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.2% to 94.96.
Elsewhere in metals trading, copper for March delivery rose 1.2 cents, or 0.48%, to trade at $2.553 a pound.
Prices of the red metal remained supported amid speculation of further monetary easing from the People's Bank of China, following a recent batch of disappointing economic data.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.