Investing.com - Gold prices edged higher on Tuesday, as concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors remained in focus, fuelling fears that the country could default on its debt be forced out of the euro zone.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery tacked on $1.10, or 0.09%, to trade at $1,194.80 a troy ounce during U.S. morning hours. Futures held in a tight range between $1,192.70 and $1,201.70.
A day earlier, gold lost $9.40, or 0.78%, to end at $1,193.70. Futures were likely to find support at $1,183.50, the low from April 14, and resistance at $1,210.60, the high from April 10.
Also on the Comex, silver futures for May delivery inched up 4.9 cents, or 0.31%, to trade at $15.93 a troy ounce. On Monday, silver fell to $15.82, the lowest level since March 19, before settling at $15.88, down 34.0 cents, or 2.1%.
The Greek government is no closer to reaching an agreement with its euro zone partners and the International Monetary Fund over economic reforms required to access remaining bailout funds, boosting demand for safe-haven assets.
On Tuesday, Bloomberg reported that the European Central Bank is considering tighter rules on Greek banks in return for emergency liquidity, adding to pressure on Athens.
Meanwhile, the U.S. dollar remained firmer after falling against the other major currencies last week when a run of soft economic data saw investors push back expectations on the timing of a rate hike by the Federal Reserve.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.4% to trade at 98.55 early on Tuesday.
Elsewhere in metals trading, copper for May delivery slumped 2.2 cents, or 0.79%, to trade at $2.711 a pound. Copper tumbled 4.1 cents, or 1.5%, on Monday as jitters over a bond default in China's construction sector weighed.
Shenzhen-based Kaisa Group Holdings became the first Chinese property developer to default on its dollar bonds after it confirmed it had failed to pay a coupon on two senior notes on Monday.
Concerns over domestic bond defaults stoked investor worries that financing deals, which have locked up vast quantities of copper, could unravel.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption.