Gold prices rebound slightly in Asia with Greece debt impasse in focus

Investing.com - Gold prices inched up on Thursday with tension over Greece a centerpiece for investors as the country and its creditors remain at an impasse.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.16% to $1,203.20 a troy ounce.

Elsewhere, silver for May delivery gained 0.19% to 16.310 a troy ounce. Copper for May delivery eased 0.01% to 2.723 a pound.

Overnight, gold futures increased modestly on Wednesday, amid mounting worries of a Greek default on its sovereign debt.

Investors anticipating a collapse in negotiations between Greece and its euro zone creditors could scurry to gold as a safe haven. Greek officials face a Monday deadline from the euro zone's working group to present a revised list of reform measures deemed necessary to unlock a critical stimulus package. The financial lifeline is considered vital for Greece to stave off bankruptcy.

While delivering a speech in New York, German finance minister Wolfgang Schaeuble told the Council of Foreign Relations that he thinks it is unlikely that Greece will reach a deal with the euro zone at a meeting next week in Latvia or anytime in the coming weeks.

Meanwhile, Greece's cash reserves could enter into negative territory next week after the deadline on Monday but ahead of the meeting in Riga, according to Reuters. In recent weeks, officials in Athens have reportedly hinted that it will meet its pension and wage obligations before repaying its debts to a troika of creditors.

When asked on Wednesday how a possible Greek default could roil markets, European Central Bank president Mario Draghi demurred, saying that he did not even want "to contemplate" the possible implications.

Earlier this week, International Monetary Fund chief economist Olivier Blanchard said the euro zone has better mechanisms and firewalls in place than it did five years ago to guard against contagion if Greece leaves the euro zone.

In spite of the uncertainty in Europe and throughout the globe in recent months, gold is down nearly 9% from mid-January when it spiked above $1,300 an ounce.