Gold eased on Tuesday as the euro slid sharply against the dollar, and as stock markets rallied on hopes that Greece would reach a deal with its creditors to stave off default. Spot gold was down 0.7 percent at $1,176.79 an ounce by 2:44 pm EDT (1844 GMT), while US gold futures for August delivery settled down $7.50 at $1,176.60.
The metal fell for the third straight session, leaving gold vulnerable to pressure from other factors, such as the prospect of the first US interest rate rise from the Federal Reserve in nearly a decade. That would boost the opportunity cost of holding non-yielding bullion. "There may be a sense of relief (over Greece) feeding into the market as a negative for gold prices in the short term, but that in many respects is a sideshow to the Fed," Standard Chartered analyst Nicholas Snowden said.
"Further losses seem likely now for gold, although that being said precious metals look a little bit oversold now while Greece could still default and exit the euro zone, an outcome that would undoubtedly boost the appeal of safe havens," said Fawad Razaqzada, technical analyst for Forex.com. Silver was down 2.4 percent at $15.72 an ounce, while platinum was up 0.4 percent at $1,061.50 and palladium was up 0.04 percent at $693.75. Platinum had dropped to its lowest in more than six years on Monday, at $1,053.75 an ounce.
Comments
Comments are closed.