Gold edges up on uncertainty over Europe, FOMC

By Frank Tang and Jan Harvey, June 18 2012

A worker grabs pre-cast bars of gold at a plant of refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio, March 1, 2012. REUTERS/Pascal Lauener

(Reuters) – Gold eked out a small gain on Monday as lingering uncertainty over the euro zone debt crisis following Greece’s elections and a policy meeting by the U.S. Federal Reserve lifted bullion from its early losses.

Safe-haven bids boosted gold as G20 leaders pressed Europe to do whatever it takes to combat Europe’s crisis after a victory for pro-bailout parties in a Greek vote reduced the chances of a euro breakup but failed to calm financial markets.

Monday’s trading volume of U.S. gold stood at just over half of its 30-day average, and gold option volatility also tumbled as investors opted to stay on the sidelines ahead of a key Fed meeting later this week.

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