Gold steadies on weaker dollar, post-Fed caution

23-Mar (Reuters) – Gold steadied on Monday, following a three-day rally that pushed it to its highest in two weeks, as a weaker dollar and caution from the Federal Reserve on the timing of a possible hike in U.S. interest rates generated modest investor interest.

Spot gold was unchanged at $1,182.60 an ounce by 1107 GMT. It climbed to its highest since March 6 at $1,187.80 on Friday, as the dollar tumbled.

European shares fell, also on caution about whether Greece can reach agreement with creditors to secure fresh funds ahead of a meeting between its prime minister and Germany’s Angela Merkel.

Gold is usually seen as an insurance against risk in times of financial or economic troubles when equities underperform.

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