Gold Near $1200 on Greek Bailout Deal Reports

Gold fell on Friday after Euro ministers and Greek officials reached an agreement to extend heavily indebted Greece’s financial rescue by four months, officials on both sides told Reuters.

An agreement removes the immediate risk of Greece running out of money next month and possibly being forced out of the single currency area. It provides a breathing space for the new leftist-led Athens government to try to negotiate longer-term debt relief with its official creditors.

Spot gold, lower flat, was down 0.7 percent to $1,199 an ounce. The metal has lost 1.6 percent so far this week, dipping to its lowest in six weeks at $1,197.56 on Wednesday, when hopes for a successful resolution to Greece’s debt talks boosted investor appetite for risk.

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