Gold dips as firmer dollar offsets euro zone concerns

---

Gold prices eased on Tuesday as a rise in the dollar offset the supportive impact of concerns over Greece's future in the euro zone and fears over escalating violence in Ukraine, which hurt risk appetite.

A 0.2 percent rise in the dollar against its currency basket led gold to stall after the previous day's rise, preventing a steeper recovery from Friday's three-week low.

Spot gold was down 0.4 percent at $1,233.52 an ounce at 3:18 p.m. EST (1618 GMT), while U.S. gold futures for April delivery settled down $9.30 an ounce at $1,232.20.

This largely overrode concerns about the economic health of the euro zone, as nervousness grew over Greece potentially withdrawing from the euro and the conflict in Ukraine mounted, weighing on global markets on Tuesday. Investors will now monitor a Greece-dominated meeting of euro zone finance ministers on Wednesday.

Euro-priced gold stood just below 1,100 an ounce on Tuesday. They hit their highest since April 2013 at 1,156.14 euros on Jan. 26.

The probability of Greece leaving the euro zone has risen several notches as Prime Minister Alexis Tsipras has taken an increasingly hard line over government debt.

European Commission President Jean-Claude Juncker told Greece not to expect the euro zone to bow to Tsipras' demands in a growing confrontation that has rattled financial markets and prompted U.S. and Canadian pleas for calm and compromise.

On the main physical markets for gold, premiums over spot prices on the Shanghai Gold Exchange contracted slightly ahead of next week's Lunar New Year holiday, MKS said in a note on Tuesday, but remained between $2.50-3.50, showing demand has emerged at lower levels.

Among other precious metals, silver was down 0.6 percent at $16.91 an ounce. Platinum was down 0.5 percent at $1,207.25 an ounce, while palladium was down 1.2 percent at $767.70 an ounce.

Source : Reuters

Gold Futures Slip as Greece Offers Compromises on Debt Talks

---

Gold slipped as concerns over the standoff between the new Greek government and creditors eased even as China showed signs of demand before Lunar New Year holidays.

Greece offered compromises ahead of an emergency meeting with its official creditors on Wednesday as German Chancellor Angela Merkel remained unyielding over terms of the country™s bailout conditions. Gold rose 4.4 percent this year, partly as concerns that Greece could be forced out of Europe™s common currency increased the metal™s haven appeal.

Asian gold buying pushed volumes on the Shanghai Gold Exchange to the highest since April 2013. The start of the Lunar New Year is considered an auspicious time to buy gold, and with markets closed during the festival that begins next week, purchases are brought forward to allow stocking.

Bullion for April delivery was 0.4 percent lower at $1,236.50 an ounce at 8:19 a.m. on the Comex in New York. Futures trading volume was 36 percent lower than the average for the past 100 days for this time of day. Gold for immediate delivery traded at $1,236.42 in London, according to Bloomberg generic pricing.

The odds of a Federal Reserve interest-rate increase as early as June rose on Feb. 6 after a government report showed payroll gains in January capped the biggest 3-month increase in 17 years. Rising rates dent the appeal of gold as it tends to offer returns only through price gains.

Holdings in exchange-traded products backed by gold increased for a fourth session on Monday to 1,678.2 metric tons, the highest in four months, according to data compiled by Bloomberg.

Source: Bloomberg

S&P 500 Erases 2015 Losses on Greece Optimism as GM, Coke Rally

---

The Standard & Poor™s 500 Index erased losses for 2015, closing above a level where previous rallies fizzled out this year, as companies from Coca-Cola Co. to General Motors Co. surged and optimism grew over Greece talks.

The S&P 500 climbed 1.1 percent to 2,068.41 at 4 p.m. in New York, the highest level since Dec. 30. The gauge is 1 percent away from its all-time high. The Dow Jones Industrial Average added 138.91 points, or 0.8 percent, to 17,868.12. The Nasdaq 100 Index rallied 1.5 percent to the highest since December.

The S&P 500 closed above a level where previous rallies have failed. Since the start of the year, three separate advances in the benchmark gauge have fizzled out just above 2,060, data compiled by Bloomberg show.

Source : Bloomberg

U.S. Stocks Rise as Coke, GM Rally Amid Greece Debt Negotiations

---

U.S. stocks rose, following two days of losses, as Coca-Cola Co. and General Motors Co. rallied while investors watched for progress on debt negotiations with Greece.

Coke gained 2.9 percent as profit benefited from cost-cutting efforts and a shift toward higher-priced drinks. GM rose 3 percent as a member of President Barack Obama™s team that restructured GM intends to propose an $8 billion stock buyback. Energy shares slipped 0.6 percent for the worst performance among 10 groups in the Standard & Poor™s 500 Index.

The S&P 500 climbed 0.7 percent to 2,061.46 at 12:25 p.m. in New York. The Dow Jones Industrial Average added 101.95 points, or 0.6 percent, to 17,831.16. Trading in S&P 500 companies was in line with the 30-day average.

Equities rose early in the day as speculation grew that Greece will reach an agreement at a Feb. 11 emergency meeting of euro-area finance ministers in Brussels. U.S. and European stocks briefly pared gains after German Financial Minister Wolfgang Schaeuble said reports that Greece would get six months to work out a debt deal are œwrong.

Source : Bloomberg

European Shares Advance Amid Optimism of Greek Bailout Agreement

---

European stocks advanced amid investor optimism that Greece can reach an agreement on bailout terms with its euro-area creditors.

The Stoxx Europe 600 Index added 0.6 percent to 372.94 at the close of trading, after earlier rising as much as 0.9 percent. Greek Finance Minister Yanis Varoufakis faces his euro-zone counterparts on Feb. 11 at an emergency meeting in Brussels. He said his government will neither tear up the existing bailout deal, nor allow the budget to be derailed, while Greece will implement about 70 percent of reforms included in the accord.

The European Commission denied an earlier report from Market News that it will table a compromise proposal at Wednesday™s gathering. The plan being worked on is to keep Greece in the euro area, although expectations are œlow for a final pact this week, the commission said.

German political leaders have said any extension of assistance to Greece must come with strings attached. Chancellor Angela Merkel said in Washington on Monday that the existing aid programs would be the basis for negotiations with Greece, and that she would wait to hear what its government has to say.

Source : Bloomberg