Gold edged higher on Tuesday, as investors remained wary of developments in Greek debt negotiations.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery tacked on 70 cents, or 0.06%, to trade at $1,242.20 a troy ounce during European morning hours.
Prices held in a range between $1,238.10 and $1,245.80. A day earlier, gold picked up $6.90, or 0.56%, to settle at $1,241.50.
Futures were likely to find support at $1,228.20, the low from February 6, and resistance at $1,269.00, the high from February 6.
Also on the Comex, silver futures for March delivery declined 17.8 cents, or 1.04%, to trade at $16.89 a troy ounce. Silver rallied 37.6 cents, or 2.25%, on Monday to end at $17.07.
The euro remained under pressure amid concerns over Greece’s future in the euro zone as negotiations with the European Union over the country's debt and bailout continued.
Greek Prime Minister Alexis Tsipras has said he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension. Instead, he is seeking a new agreement to cover Greece’s funding needs until June.
European Commission President Jean-Claude Juncker said Monday that Greece should not expect the euro zone to accept their latest terms, raising fears over a clash between Greece and its euro zone creditors.
Gold's gains were limited amid the growing possibility of an earlier Federal Reserve rate hike, following last week's robust U.S. jobs report, which saw market players bring forward expectations for the first Fed rate hike to June.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, copper for March delivery slumped 1.3 cents, or 0.48%, to trade at $2.568 a pound, as lower-than-expected inflation raised the prospect of further monetary easing from the People's Bank of China.
A government report released earlier showed that Chinese inflation for January slowed to 0.8%, the lowest since November 2009, from 1.5% in December.
The producer price index fell by a more-than-expected 4.3% last month, giving policymakers in Beijing more room to ease monetary policy.
China's central bank cut banks' reserve requirement ratios last week in an effort to boost lending and spur economic activity.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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