Gold Drops to Near $1200 on Europe Situation

Gold and silver fell to six-week lows, while platinum fell to the lowest since 2009, on signs that Greek banks will continue to get emergency funding despite a breakdown in debt talks between their government and euro zone partners.

A person familiar with the matter told Reuters the European Central Bank (ECB) was unlikely to pull the plug on funding for Greek banks this week, raising hopes that policymakers will eventually break the impasse to strike a deal.

The ECB is set to decide on Wednesday whether to maintain emergency lending to Greek banks.  Spot gold fell as much as 2.3 percent to its lowest since Jan. 6 to $1,203.03 an ounce in earlier trade and was last down 1.9 percent at $1,208.16. Traders said some of the selling was technical as the market extended losses after falling below the 100-day moving average at $1,216.45.


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