Gold prices fell back Friday, just hours after an apparent deal between debt-choked Greece and potential Eurozone lenders reinvigorated hopes the nation would not be forced to default on its loans.
Greek political leaders said they had clinched a deal on economic reforms and spending cuts needed to secure a second bailout, but eurozone finance ministers demanded more measures and a parliamentary seal of approval. Finance ministers of the 17-nation eurozone meeting in Brussels warned there would be no immediate approval for the rescue package.
Negotiations on both sides of the Atlantic Ocean, between Greece and its lenders and between big U.S. banks and the federal government, boosted the willingness of investors Thursday to move into risk assets, many of which posted gains.
Greek political leaders clinched a long-stalled deal on Thursday on harsh austerity measures and reforms required to secure a second international bailout in two years but the country's financial backers reacted skeptically.
The plans underscore concerns in the eurozone about debt and a potential relapse into recession.
Greek leaders clinched a long-stalled deal on reforms and austerity measures needed to secure a bailout and avoid a messy default, government sources said, hours before the country's financial backers were to meet in Brussels on Thursday. The euro and European stocks strengthened on news of the breakthrough.
The European Central Bank held interest rates at a record low on Thursday, seeing tentative signs of economic stabilization, but refused to say what part it might play in averting a ruinous Greek default.
China's inflation unexpectedly rebounded in January mainly due to gains in food prices and a weeklong holiday. Though this does not change the broader downward trend in inflation and provides room for Beijing to stimulate its economy if the Euro area experiences a sharp recession. It does support economists' view that Beijing will not put in place aggressive stimulus packages as it aims for a smooth leadership transition this year.
Gold edged up along with crude oil and the euro on expectations the Greek prime minister's presence in Brussels Thursday signals a likelihood his nation will receive desperately needed bailout money.
China's stock market improvement could be jeopardized by a higher than expected inflation reading for January.
China's annual inflation rate hit 4.5 percent in January, which is the highest level in three months, according to the official data released Thursday.
Japan's Nikkei average eased from a three-month high to trade below 9,000 Thursday amid uncertainty over the outcome of the Greek bailout talks.
Stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.
Global securities, whether stocks, commodities or currencies, held earlier gains or losses Wednesday as the world awaited the outcome of talks between debt-choked, strife-torn Greece and benefactors demanding more tax hikes and government budget cuts in exchange for bailout money.
Gold fell on Wednesday as technical resistance prompted investors took profits after the previous session's rally and on moreuncertainty about Europe's economy.
Though the Maldives capital Malé remains in turmoil after the ousting of president Mohamed Nasheed, officials say resorts in the popular tourist destinations remain safe and open for business.
As a part of a new deal between the city's hotels and their unions, personal panic alarms will be distributed to hotel staff members later this year.
Greek parties will try on Wednesday to agree to a reform deal in return for a new EU/IMF rescue to avoid a chaotic default, after repeated delays which have prompted warnings that the euro can live without Athens.
Inflation in China is expected to trend lower in January, which provides room for Beijing to stimulate the country's economy if the Euro area experiences a sharp recession. However, economists do not expect to see aggressive stimulus packages to be put in place as Beijing is looking to achieve a smooth leadership transition this year.
The ongoing Eurozone debt crisis and the efforts to find a way out and save the single currency could potentially shake up and redefine the global economic equilibrium.
Gold prices hovered in a narrow range Wednesday, with little support from crude oil prices or the euro and uncertainty about whether Greece will accept slightly easier bailout terms from Eurozone leaders, known collectively as the troika.
Leaders of the three parties in Prime Minister Lucas Papademos's coalition postpone crunch meeting.
