NEW YORK (TheStreet) -- Gold prices were firming despite a stronger U.S. dollar.
Gold for April delivery was rising $3.20 to $1,121.50 an ounce at the Comex division of the New York Mercantile Exchange. Prices were trading as high as $1,125.90 and a low as $1,115. The U.S. dollar index was higher by 0.01% to $80.67.
Gold was trading firmly over $1,100 an ounce as bargain hunters supported prices. Risk appetite grew as a Greek bailout started to take shape, a slew of M&A activity buoyed markets and relatively positive economic data increased investor demand for riskier commodities.
Analysts expect gold to trade in a tight trading range as investors look to a Greek Cabinet meeting Wednesday when officials will discuss harsher financial measures. Greece has already implemented tax hikes and spending cuts but the EU is pressuring the country to institute even more before pledging a massive amount of financial aid. The health of the euro as well as investors risk tolerance hinges in part on what happens in Greece. Traders will also stay relatively cautious headed into Friday's U.S. nonfarm payroll report as rising unemployment will hinder hopes of a sustained economic recovery.
"Overall [gold] appear[s] comfortable in recent ranges ($1,080-$1,130)," says James Moore, analyst at thebulliondesk.com in his daily metals report. "Traders and investors [will] look for clarity on the broader macro-economic picture and in particularly what, if any deal or rescue package for Greece is agreed by the EU."
Silver prices were rising 15 cents to $16.62 while copper was flat at $3.35. The base metal rose over 2% on Monday as the earthquake in Chile, the world's largest copper producer, prompted fears of a supply crunch. Most mines have resumed production.
