Gold edged lower on Monday, dragged down by the euro after a weekend emergency summit to tackle Greece’s debt crisis yielded no deal and with the U.S. Federal Reserve still on track to raise interest rates this year.
Greece will now be required to push legislation through parliament this week to convince its euro zone creditors to release funds to avert a state bankruptcy and start negotiations on a third bailout program estimated at up to 86 billion euros ($95.5 billion).
The news weighed on the euro, making dollar-denominated assets such as gold more costly for holders of other currencies. Spot gold was off 0.2 percent at $1,161.10 an ounce by 0156 GMT, after falling for a third straight week. Also a drag on gold were signals from Federal Reserve Chair Janet Yellen on Friday suggesting that the U.S. central bank is on course to raise interest rates within this year.