Gold inches up on weaker dollar, Greece bailout hopes

SINGAPORE, Spot gold edged higher onTuesday, supported by a weaker dollar as the euro 

rallied on hopes that Greece's parliament will pass an austerity plan toavoid a sovereign debt

default. 

 FUNDAMENTALS

 * Spot gold gained 0.3 percent to $1,500.25 an ounce, off a five-week low of $1,490.30 in the 

    previous session. Spot gold has posted losses for three straight trading days. 

 * U.S. gold GCcv1 also rose 0.3 percent to $1,501.10. 

 * A weaker dollar lent support for bullion prices, as the euro extended gains from the previous 

    session on expectations that Greece's parliament will approve a fiscal austerity package  

    needed for the country to get emergency aid. 

 * Greece's parliament began on Monday to debate the unpopular austerity plan, and is 

   expected to vote on it on Wednesday.  

 * The U.S economy continued to show signs of deceleration, as consumer spending failed to 

    rise in May, breaking 10 straight months of gains.  

 MARKET NEWS 

 * U.S. stocks rose from three days of losses on Monday, led by banks after news of more 

    favorable capital requirements and optimism over Greece's austerity plan.

 * U.S. crude oil rose above $91 a barrel on Tuesday as the euro rallied against the dollar.