Investing.com - Gold prices inched higher on Monday, amid growing concerns over a potential Greek exit from the euro zone and as investors weighed expectations for the timing of the first U.S. rate hike following Friday's robust U.S. employment report.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery tacked on $3.00, or 0.24%, to trade at $1,237.60 a troy ounce during U.S. morning hours. Prices held in a range between $1,234.50 and $1,243.60.
On Friday, gold touched $1,228.20, the lowest level since January 15, before ending at $1,234.60, down $28.10, or 2.23%.
Futures were likely to find support at $1,228.20, the low from February 6, and resistance at $1,269.00, the high from February 6.
Greek Prime Minister Alexis Tsipras said Sunday that he would deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension.
Instead, he said he will seek a new "bridge agreement" to cover Greece’s funding needs until June.
Athens main stock index sank almost 5%, while the yield on Greek 10-Year bonds rose sharply to trade above the 11%-level. Ahead of the election, the 10-year yield was below 9%.
Meanwhile, the dollar remained supported after data on Friday showed that the U.S. economy added 257,000 jobs in January, far more than the 234,000 forecast by economists. December’s figure was revised to 329,000 from a previously reported 252,000.
While the unemployment rate ticked up to 5.7% last month from December’s 5.6% hourly earnings and the participation rate both saw increases in January.
The upbeat data added to the view that the strengthening economic recovery may prompt the Fed to start raising rates from near zero levels as early as 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.
Also on the Comex, silver futures for March delivery rallied 28.9 cents, or 1.73%, to trade at $16.98 a troy ounce. Silver tumbled 50.2 cents, or 2.92%, on Friday to settle at $16.69.
Elsewhere in metals trading, copper for March delivery slumped 0.6 cents, or 0.22%, to trade at $2.580 a pound, as disappointing Chinese trade data added to speculation that policymakers in Beijing may implement further stimulus measures.
Over the weekend, China reported a trade surplus of $60.0 billion in January, compared to expectations for $48.9 billion and up from a surplus of $49.6 in December.
Exports slumped 3.3% from a year earlier last month, missing expectations for a 6.3% increase, while imports tumbled 19.9%, much worse than forecasts for a decline of 3.0%.
According to the data, China imported 410,000 tons of copper in January, down 2.4% from 420,000 tons in December.
The disappointing data added to speculation policymakers will have to introduce further stimulus measures to support the economy and boost growth.
China's central bank cut banks' reserve requirement ratios last week in an effort to boost lending and spur economic activity.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.