Gold Drops Below $1190 on Greece Optimism

Gold was pressured by sharp overnight losses on Tuesday as its safe-haven appeal was diminished by increasing hopes that Greece would reach a deal with its creditors to avoid a default.

Strength in U.S. equities also curbed demand for the precious metal.  Spot gold was little changed at $1,185.65 an ounce by 0009 GMT, after losing 1.3 percent on Monday.

Bullion, often seen as an alternative investment during times of financial and economic uncertainties, had seen modest support in the last few days as Greece struggled to strike a deal with its international creditors to avoid a default that could have seen it exit the euro zone.


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