Gold rises as Fed hints of monetary stimulus
Gold prices rose in early Asian trading on Thursday, erasing several sessions of declines on reports several Federal Reserve policymakers were willing to stimulate the U.S. economy via monetary easing measures should recovery wane.
Fears that Greece will exit the eurozone have fueled demand for gold's traditional hedge, the dollar, in recent days, which has sent the metal falling.
The Fed's language from the minutes of its latest monetary policy meeting, however, halted gold's slide.
"Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough," the Federal Reserve minutes read.
Stimulus measures tend to weaken the dollar, and talk that monetary policy authorities are even considering them sends gold rising.
Greek political turmoil failed to prevent gold from posting solid gains.
The country appears set to hold new elections on June 17 to end an impasse among the nation's political parties.