SINGAPORE: GOLD ticked lower on Friday after rising more than 1 percent in the previous session, but prices held near their highest in six weeks due to the uncertainty surrounding the euro zone debt crisis and the prospect of a Greek exit from the euro.
Greece's abrupt call for a referendum, just days after a deal was struck to save the debt-stricken country from defaulting, ignited panic in global financial markets.
But intense European pressure has forced Greece to seek political consensus on a new bailout plan instead of holding a referendum after EU LEADERS raised the prospect of a Greek exit from the euro to preserve the single currency.
Greece's abrupt call for a referendum, just days after a deal was struck to save the debt-stricken country from defaulting, ignited panic in global financial markets.
But intense European pressure has forced Greece to seek political consensus on a new bailout plan instead of holding a referendum after EU LEADERS raised the prospect of a Greek exit from the euro to preserve the single currency.
Gold fell $4.86 an ounce to $1,757.79 an ounce by 0320 GMT, but headed for its second week of gains. Gold jumped to as high as $1,767.40 on Thursday, its strongest since Sept. 22 -- still below a record around $1,920 hit in September.
"It's not all plain sailing in the Aegean," said Nicholas Trevethan, a senior metals analyst at ANZ Bank in Singapore.
US gold edged down 0.33% to $1,759.30 an ounce. "Whether Greece will break free from the euro zone, we don't know. I think gold is really supported by the euro zone (crisis)," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
"I think sentiment is more or less still bullish because of the Greek problem and the banking sector is also not good. People are still packing their money into safe-have assets," said Leung, who pegged resistance at $1,800.
Gold jumped to a record in September on worries the debt crisis in Europe would spread, although gains had been trimmed by recent a sell-off in equities, which forced investors to cash in on bullion to cover losses.
The Nikkei rose more than 1 percent on Friday, catching up with U.S. gains after a Japanese holiday, as it looked increasingly likely that Greece will abandon the proposed referendum which threatened a plan to contain Europe's debt crisis.
Investors also turned their attention to the US non-farm payrolls data later today, which could offer clues as to the whether the US Federal Reserve might launch more stimulus measures to boost a sagging economy.
Economists expect the US Labor Department to report an October nonfarm payrolls gain of 95,000, according to a Reuters poll.
The euro hardly changed at t $1.3823 after having topped out at $1.3855, near its 55-day moving of $1.3851 and a 38.2 percent retracement of its steep fall from its Oct. 27 peak around $1.4250.
In the energy market, oil held steady on Friday after rising more than a $1 in the previous session as Greece backed away from the referendum and a rate cut by the European Central Bank raised hopes for an easing of the region's debt crisis.
"It's not all plain sailing in the Aegean," said Nicholas Trevethan, a senior metals analyst at ANZ Bank in Singapore.
"I think sentiment is more or less still bullish because of the Greek problem and the banking sector is also not good. People are still packing their money into safe-have assets," said Leung, who pegged resistance at $1,800.
Gold jumped to a record in September on worries the debt crisis in Europe would spread, although gains had been trimmed by recent a sell-off in equities, which forced investors to cash in on bullion to cover losses.
The Nikkei rose more than 1 percent on Friday, catching up with U.S. gains after a Japanese holiday, as it looked increasingly likely that Greece will abandon the proposed referendum which threatened a plan to contain Europe's debt crisis.
Investors also turned their attention to the US non-farm payrolls data later today, which could offer clues as to the whether the US Federal Reserve might launch more stimulus measures to boost a sagging economy.
Economists expect the US Labor Department to report an October nonfarm payrolls gain of 95,000, according to a Reuters poll.
The euro hardly changed at t $1.3823 after having topped out at $1.3855, near its 55-day moving of $1.3851 and a 38.2 percent retracement of its steep fall from its Oct. 27 peak around $1.4250.
In the energy market, oil held steady on Friday after rising more than a $1 in the previous session as Greece backed away from the referendum and a rate cut by the European Central Bank raised hopes for an easing of the region's debt crisis.
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