Gold Falls as USD Rises and Greece in Focus

Gold eased on Monday as the dollar rose and as European equities jumped on possible signs of progress in Greek debt talks, which curbed safe-haven demand for the metal.

Spot gold had slipped 0.6 percent to $1,192.01 an ounce, about 1 percent below its highest level since May 26 at $1,205.50 hit last week after a dovish Federal Reserve message on the timing of a U.S. interest rate rise.

U.S. gold futures for August delivery were down $9.90 at $1,192.00 an ounce.

Gold is typically regarded as a good bet in times of financial and economic uncertainty, but traders have seen modest demand over the past few days from investors concerned about the Greek debt crisis.

“It is difficult to call on Greece, we haven’t seen much buying above $1,200 and wider financial markets are hopeful that there will be a last-minute solution that will avoid a Greek default,” Societe Generale analyst Robin Bhar said.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza