Gold bounces up from 2-1/2-week low as dollar, shares fall

28-May (Reuters) – Gold inched higher after hitting a 2-1/2 week low on Thursday as the dollar and global shares fell alongside uncertainty about Greece and an unexpected rise in U.S. jobless claims.

Spot gold was up 0.1 percent at $1,188.30 an ounce by 2:26 p.m. EDT (1826 GMT) after falling to $1,180.55, the lowest since May 11. U.S. gold futures for June delivery settled up $2.50 at $1,188.10 an ounce.

European Central Bank Vice President Vitor Constancio underlined the gravity of the situation facing Greece, talking openly about a possible default that would be the first of its kind in the eurozone.

A worsening of the Greek debt crisis could trigger demand for gold coins and bars. Gold is usually seen as a hedge against political and financial risk, although the impact on demand from wider political worries is usually short-lived.

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