Gold Drops to Seven Week Low Near $1190

Gold fell to its lowest in seven weeks on Monday, as the dollar and shares gained after a Greek debt deal was struck, removing investor flight for safety, while the absence of major consumer China also took its toll.

Spot gold dropped 0.9 percent to its lowest level since Jan 9 at $1,191.01 an ounce before rising slightly to be down 0.3 percent at $1,201. The metal has posted four straight weeks of declines, dented by a strong dollar, expectations of a U.S. interest rate hike and hopes of a deal between Greece and its lenders.

“Gold has lost the $1,200 level which is damaging from a psychological point of view … and it is back to the lows seen at the beginning of January …that’s triggering some additional sell orders,” said Mitsubishi Corp strategist Jonathan Butler.

CNBC

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