SINGAPORE, Feb 20 (Reuters) - Gold prices climbed more
than half a percent on Monday as investors were buoyed by policy
easing in China and hopes for Greece to seal a bailout deal at a
meeting with euro zone officials later in the day.	
    An easing monetary stance boosts sentiment in gold by
raising the inflation outlook down the road and attracting
investors to bullion, a good hedge against inflation. 	
    China cut its required reserve ratio over the weekend,
joining a number of central banks in relaxing monetary policies
to promote economic growth while the euro zone debt crisis
continues to overhang the global economy. 	
    The optimism on a deal later in the day between Greece and
the euro zone on the second bailout for Greece sent equities and
the euro up, helping support gold.  	
    "There is the expectation that everyone is going to relax
monetary policy, which will be good for stocks and commodities,"
said Ronald Leung, a physical dealer with Lee Cheong Precious
Metals in Hong Kong.	
    Spot gold rose 0.6 percent to $1,733.49 an ounce by
0713 GMT, on course for its biggest daily rise in two weeks.	
    U.S. gold also gained 0.6 percent to $1,735.40.	
    Technical analysis suggested that spot gold could rise to
$1,747 an ounce during the day, said Reuters market analyst Wang
Tao. 
    	
    	
    	
    CAUGHT IN A RANGE	
    Gold has been caught in a range between $1,700 and $1,760
since the beginning of February, as investors held back big bets
as Greece ground towards a deal with its international lenders
on tough reforms and austerity measures in exchange for a
130-billion-euro bailout.	
    "Gold is searching for its next catalyst and has been caught
between healthy, albeit slower, investment demand and some
support from the physical market," said Barclays Capital in a
research note.	
    A small amount of buying and selling was spotted in Asia's
physical market, dealers said.	
    Money managers in gold futures and options reduced their net
long position in the week of Feb. 14, their first decline in
five weeks, as investors unwound some safe-haven bets due to
optimism surrounding the Greek debt crisis. 	
    In silver, net long positions rose to a
five-month high to 25,747 contracts, in tandem with rising
length in industrial metals such as copper.	
    Holdings in the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, rose to a two-month high of
1,281.285 tonnes by Feb 17. 	
	

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