* Euro retreats from session high versus dollar
* Stocks still soft ahead of talks on Greek debt
* Indian demand softens as traders digest duty hike
By Jan Harvey
LONDON, Jan 18 (Reuters) – Gold turned lower on
Wednesday in line with a dip in the euro from the day’s highs
and a decline in stock markets, as initial enthusiasm over the
International Monetary Fund’s plan to boost lending to
struggling euro zone nations evaporated.
Spot gold was down 0.3 percent at $1,645.84 an ounce
at 1447 GMT, off a high of $1,659.21 an ounce, while U.S. gold
futures for February delivery eased $8.00 an ounce to
$1,647.60.
The euro pared gains versus the dollar as the rally sparked
by the IMF plan and a Fitch’s comment that the ratings agency
did not expect Italy to default ran out of steam.
Traders are awaiting the outcome of talks between Greece and
its creditors, as they go head to head on Wednesday amid rising
optimism the country can hammer out a bond swap deal to stave
off a painful default.
“If you can move towards a long-term solution in Europe,
then that is negative for gold,” said Natixis analyst Nic Brown.
Continued…
