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Gold futures edge higher on Greece debt woes

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Forex Pros - Gold futures edged higher on Monday, climbing to a daily high after the arrest of International Monetary Fund chief Dominique Strauss-Kahn for sexual assault over the weekend added to uncertainty surrounding a bailout for Greece.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,497.25 a troy ounce during late Asian trade, edging 0.16% higher.

It earlier rose as much as 0.2% to a daily high of USD1,497.75 a troy ounce.

Euro zone finance ministers were to meet later in the day to discuss further support for Greece which is struggling to meet the terms of a EUR110 billion European Union/IMF bailout last year.

IMF managing director Strauss-Kahn had been scheduled to meet German Chancellor Angela Merkel on Sunday and join euro zone finance ministers on Monday.

Fears over U.S. debt also boosted the precious metal after President Barack Obama said on Sunday that a failure to raise the U.S. debt ceiling could disrupt the global financial system.

In a televised interview on the "Face the Nation" program aired on CBS, President Obama warned that "the entire financial system could unravel" and that the U.S. "could have a worse recession than we've already had", if Republican and Democratic lawmakers failed to raise the debt ceiling in time.

The U.S. Treasury Department projected earlier this month that the government was expected to reach the USD14.3 trillion debt-ceiling limit as soon as mid-May and run out of options for avoiding default by early July.

Traders were also reportedly looking ahead to a speech Monday by Federal Reserve Chairman Ben Bernanke, in which he is expected to provide more clarity on U.S. interest rate policy.

Elsewhere, silver for July delivery sank 1.35% to trade at USD34.89 a troy ounce during late Asian trade, after falling by as much as 2.95% to a daily low of USD34.23.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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