The gold price fell on Monday as fresh political turmoil in Greece pushed the dollar higher.
Gold for February delivery on the Comex division of the New York Mercantile Exchange closed down $13.40, or 1.1 percent, at $1,181.90 per ounce. Trade ranged from $1,178.60 to $1,197.50.
“With a strong dollar backdrop, gold is finding it hard to hold on to any gains and we find ourselves back down to just above the key $1,170 support zone,” Triland Metals said in a report.
“Light conditions may on Boxing Day and today may have amplified the move up and down and we will await to see what the new year brings for the real action around this long term support area,” the broker added.
The dollar strengthened by 0.22 percent to 1.2154 against the euro after a parliamentary vote in Greece failed to elect a new president, paving the way for a snap election that could empower anti-austerity independence parties.
The European Central Bank has already warned that a move towards anti-austerity against the EU and IMF would lead to sanctions.
Meanwhile, the equity market rally paused in the wake of the Greek news with the Dow Jones industrial average and S&P 500 both near unchanged.
As for other commodities, light sweet crude (WTI) oil futures for January delivery were down $1.06, or 1.94 percent, at $53.67 per barrel, while the most-actively traded Comex copper contract ended at $2.822 per pound, up 0.8 cents.
After a light day for economic inputs, Tuesday and Wednesday will see a run of keynote economic releases. Notable figures include China’s final HSBC flash PMI on Tuesday, with US Tuesday/Wednesday releases including consumer confidence, weekly jobless claims, the Chicago PMI and pending homes sales, among others.
The post Gold slides after Greek anxiety prompts modest dollar bounce appeared first on The Bullion Desk.
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