Greece, which received a bailout of 110 billion euros last year from European Union and IMF, needs a second loan agreement to meet its payments beyond 2012.

European Union leaders will meet later in a day in Brussels to discuss about the another round of rescue package for Greece.

Leaders of Germany and France will be presenting a rescue proposal for Greece to a summit meeting of European officials.

There are quite possible chances that they reach to an agreement to provide aid to Greece because Greek economy's contagion is slowly spreading to its neighboring nations like Italy and Spain.

Failure to reach an agreement could cause economic damage to the global economy, the head of European Commission warned.

While German Chancellor Angela Merkel said yesterday that the problem can't be solved in one step, the International Monetary Fund said the crisis may hurt the rest of the euro region even if officials do avert a default.

Global investors and traders have kept their eyes on to watch out the outcome of the meeting. Positive signs would help gold to rebound.

Those who have gone long on gold must maintain caution if any rebound happens in gold prices.

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