 "Gold prices firm above $1,200 on safe-haven bids")
Gold prices firmed above $1,200 an ounce on Tuesday, hitting a near three-week high, as tumbling global equities and concerns over Greece's future in the euro zone prompted investors to seek safety in the metal.
Asian shares took a hit on Tuesday from sliding oil prices and political uncertainty in Greece. On Monday, both the Dow Jones Industrial Average and the Standard & Poor 500 suffered their biggest one-day declines in about three months.
There is increasing speculation that Greece might exit the euro zone if a left-wing party that has vowed to end austerity measures and erase a big portion of its debt wins the January 25 elections as widely expected.
"There is a bit of talk about safe-haven buying, given the spike in uncertainty regarding the future of the euro zone," said MKS Capital trader James Gardiner. The general risk-off sentiment in the markets should help bullion hold its recent gains, he added.
Prices could see near-term resistance around the 100-day moving average of $1,216, while support is seen near $1,180, ScotiaMocatta's technical analysts said.
In a sign of improving investor sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.25 per cent to 710.81 tonnes on Monday, though still near a six-year low.
Asian shares took a hit on Tuesday from sliding oil prices and political uncertainty in Greece. On Monday, both the Dow Jones Industrial Average and the Standard & Poor 500 suffered their biggest one-day declines in about three months.
There is increasing speculation that Greece might exit the euro zone if a left-wing party that has vowed to end austerity measures and erase a big portion of its debt wins the January 25 elections as widely expected.
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Spot gold had ticked up 0.5 per cent to $1,210.10 an ounce by 0749 GMT, adding to the previous session's 1.3-per cent gain. It climbed to $1,211.70 earlier, the highest since December 18.
"There is a bit of talk about safe-haven buying, given the spike in uncertainty regarding the future of the euro zone," said MKS Capital trader James Gardiner. The general risk-off sentiment in the markets should help bullion hold its recent gains, he added.
Prices could see near-term resistance around the 100-day moving average of $1,216, while support is seen near $1,180, ScotiaMocatta's technical analysts said.
In a sign of improving investor sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.25 per cent to 710.81 tonnes on Monday, though still near a six-year low.