Gold holds losses, struggles below $1,200 on firmer dollar

Gold struggled below USD 1,200 an ounce on Tuesday, following small overnight losses, hurt by a firmer dollar and a lack of robust safe-haven bids from the Greek debt crisis.

FUNDAMENTALS

* Spot gold was little changed at USD 1,184.01 an ounce by 0042 GMT, after losing 0.3 percent on Monday.

* Greece calmed immediate fears of a default on Monday by making a crucial 750 million euro payment to the International Monetary Fund a day early. But its finance minister said the liquidity situation was "terribly urgent" and a deal to release further funds was needed in the next couple of weeks.

* Euro zone finance ministers welcomed some progress in slow-moving talks on a cash-for-reform deal between Athens and the IMF, the European Commission and the European Central Bank, but said more work was needed to reach a deal. Failure to do so could see Greece exit the euro zone.

* The US dollar rose against the euro on Monday on renewed worries over Greece.

* Typically the Greek debt crisis would have stoked safe-haven demand for gold, but the strength in the dollar offset such bids.

* A stronger dollar makes gold more expensive for holders of other currencies, while also diminishing its appeal as a hedge.

* Bullion also failed to get a big lift-off from last week's US jobs data that tempered views that a US rate rise could come at the Federal Reserve's next policy meeting in June. Higher rates could dent demand for non-interest-paying bullion.

* Holdings in SPDR Gold Trust, the top gold-backed exchange-traded fund, saw the sharpest decline this year on Friday, a sign of bearish investor sentiment.

* Developments over the Greek debt crisis will be closely watched this week for bullion trading cues, along with more US economic data.

* Elsewhere, AngloGold Ashanti Ltd, Africa's top bullion producer, said on Monday steep wage demands and rising power costs could turn South Africa's once thriving gold sector into a "sunset" industry.

* Platinum producer Lonmin is taking steps to cope with what it says could be at least two more years of depressed platinum prices after reporting another loss in the first half of its financial year.