Gold futures rise as Greek tensions resurface

NEW YORK (MarketWatch) -- Gold futures rose slightly early on Thursday, receiving a lift as uncertainty over aid to Greece led investors to seek the precious metal's safe haven, helping to offset the impact of a stronger dollar.
Gold for April delivery added 20 cents at $1,124.40 an ounce in electronic trade.

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The IMF is a better body than the proposed European Monetary Fund for helping Greece overcome its fiscal problems

Doubts about the euro-zone's aid plan for the debt-strapped Greek government resurfaced amid talk that Greece might resort to help from the International Monetary Fund.

Continuing Wednesday's trend, the precious metal rose even as the dollar advanced. A stronger dollar tends to pressure gold, making it more expensive for holders of other currencies and less attractive as a hedge against weaker currencies.

The dollar index (DXY 79.93, +0.30, +0.37%) , which measures the U.S. unit against a basket of six major currencies, rose 0.3%. The dollar strengthened especially against the euro, which fell 0.5% to $1.3661.

The precious metal stayed higher after U.S. reports showed jobless claims fell in the latest week and consumer prices were unchanged in February.

On Wednesday, gold finished slightly higher at the New York Mercantile Exchange as investors cheered the Federal Reserve's prior-session pledge to maintain U.S. interest rates at exceptionally low levels and as the Bank of Japan doubled the scale of its lending programs.

Nick Godt is MarketWatch's markets editor, based in New York.

Source: Wall Street Journal, By Nick Godt, MarketWatch