Gold Prices Steady Near Two-Week Highs

Gold prices steady near a two-week high on Wednesday after rising euro put on the previous day, by continuing investors took cues from the direction of a single currency.

In the short term, if investors continue to cut short position on the views they have to sell the single currency too much concern about the Greek, there is scope for bullion to test the upside, traders said.

Spot gold rallied to a two-week high on Tuesday as the euro recovered from hefty losses recently against the dollar as investors flinched and gold to hedge against the risk of debt default in Europe.

"As is the case the day after a strong rally, gold has been steadily as investors take a break from buying, but the golden chance to extend benefits to the euro as sentiment improves," GM said Tetsu Emori Co. Astmax.

Recovery of the euro triggered buying oil and other commodities as a weaker dollar makes dollar-denominated commodities cheaper for holders of non-currency dollars.

Collecting for commodities and stock market gains also boosted sentiment, which reflects the return of risk appetite among investors, traders said.

Spot gold dropped 0.3% to $ 1 115.90 / oz as of 02:47 GMT, compared with New York's notional close of $ 1 118.95. Spot gold rose as high as 1 $ 120.80 on Tuesday, the highest since February 3.

U.S. gold futures for April delivery also edged down 0.3% to $ 1 116.60 / oz, compared with $ 1 119.80 / ounce on the COMEX division of the New York Mercantile Exchange. Deposits over $ 29.80, or 2.73%, on Tuesday at their settlement highest level since January 19.

Euro-gold price was 810.50 euros per ounce on Wednesday, slipping from a record high 819.07 euros per ounce hit the previous day. The price of gold in sterling and the South African rand also rose to the highest one-month on Tuesday.

European finance ministers said on Tuesday that Greece must report by March 16 implementation schedule steps the budget targets for 2010, and another by May 15 to set the policy measures necessary to comply with the finance minister's decision. Quarterly reports will be required from then on.

"The problems that burdened the euro is not resolved, but it is also difficult to see the euro recently plunged below the lowest in Greece itself as the problem has been solved the problem and the steps being discussed," Emori said.

Euro held steady on Wednesday after the dollar rebounded to post the biggest single day since July to get the previous day, as traders bet the single currency slid too far in recent weeks over concerns about the Greek public finances.

Nikkei stock average rose 2.1%, following gains in U.S. stocks, which posted their biggest daily percentage gain in three months on Tuesday.

The increase in the gold markets spur demand for investment, with ownership in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.3% or 3046 t of the previous working day up to 1 in 109,424 t February 16. This is the first increase in ownership since February 5.

Billionaire investor George Soros' hedge fund owned 6.2 million shares of SPDR Gold Trust at the end of the year valued at $ 663 million, up from 2.5 million shares at the end of the third quarter.