Gold Drops to $1195 on Stronger Dollar

Gold held on to overnight losses on Tuesday, trading below the key $1,200 an ounce level, as a rally in global equities and a firmer dollar dented the metal’s appeal as a haven.

Spot gold was little changed at $1,195.80 an ounce by 0039 GMT, after losing 0.7 percent on Monday.  The dollar rose broadly on Monday, with the euro sliding more than half a percent against the U.S currency, on growing concern that Greece may default on debts.

Athens is in negotiations with its euro zone partners and the International Monetary Fund over reforms required to unlock remaining bailout funds. Public sector entities in Greece were ordered to transfer idle reserves to the central bank to help with a cash squeeze.


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