Gold held a two-day gain as a climb in the dollar paused and concern increased that Greece may stumble in its bid to avoid default, boosting haven demand.

Bullion for immediate delivery was at $1,178.71 an ounce at 8:24 a.m. in Singapore from $1,176.80 on Tuesday, when prices rose as much as 0.8 percent to $1,183.06, according to Bloomberg generic pricing. Prices have gained since Monday after three straight weeks of losses.

While gold is 0.5 percent lower this year as investors gauge when the Federal Reserve will raise borrowing costs, rising tension between Greece and its creditors may spur demand for bullion as a haven. A revised plan submitted by Greece just three weeks before its financial safety net expires was still not considered credible, according to an international official familiar with the matter. A Greek default on its obligations may precipitate the country’s exit from the euro.

The Bloomberg Dollar Spot, a measure of the greenback versus 10 major currencies, was little changed for a second day on Wednesday after dropping 1 percent in Monday. The Fed is scrutinizing data for signs the U.S. economy can withstand higher borrowing costs, with a retail-sales report on June 11 forecast to show consumer demand recovering in May.

Gold for August delivery was unchanged at $1,177.60 an ounce on the Comex. Assets in bullion-backed exchange-traded products are around the lowest level since 2009.

Source : Bloomberg