With the prospect of a default looming in Greece, Prime Minister Alexis Tsipras is preparing to meet next week with President Vladimir V Putin of Russia as a European deal to give more aid to Athens falters.
The timing has raised questions of whether the visit is an ordinary component of the new Greek government's multipronged foreign policy, or a pivot toward Russia for financial aid in the event that Greece's talks with European officials collapse.
Negotiations between the struggling Greek government and its creditors stumbled anew on Monday after European leaders said that a reform plan submitted over the weekend to unlock a fresh lifeline of euro 7.2 billion, or about $7.8 billion, fell short. Greece has warned that it may run out of money soon after Tsipras meets with Putin on April 8.
Note gold's move today as Greek tensions increase and US economic numbers diminish.
Severe austerity pushes democracies to make extraordinary alliances.