Gold prices dipped below $1,180 on the London spot market and on the Chicago Mercantile Exchange on Friday afternoon after some progress was made in Greek debt talks.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last down $17.10 at $1,177.1 per ounce. Trade has ranged from $1,195.4 to $1,175.4.
As well, spot gold hit a one-month low – it was last at $1,176.60/1,177.40 per ounce, down $16.40 on the previous session’s close. Silver followed gold lower, falling 15 cents at $15.68/15.73, having also hit its lowest in one month at $15.60.
Gold’s credentials as a safe-haven investment appear to have taken a hit on suggestions that Greece is closer to a bailout deal after a summit of eurozone ministers in Riga today. The country is running out of money – Athens is under pressure to accelerate reforms that would secure a deal before it defaults on its debts.
But Fridays have also been a particularly poor day for the metal in recent weeks when bulls have chosen to pull out of the market.
In addition, light sweet crude (WTI) futures were down $1.02 or 1.8 percent at $56.71 per barrel in the most active contract, which may also have pressured gold prices lower. Brent crude had earlier found support from reports of further Saudi-led airstrikes on Houthi rebels in Yemen, hitting its highest in four months at $65.75.
A close above or below $1,180 is important for next week’s direction in gold – the Federal Open Market Committee (FOMC) meeting takes place on Tuesday to discuss normalising US monetary policy.
The members of the Fed’s policy board are locked in what has become an increasingly public debate on when will be the right time to raise interest rates, which have been near zero since December 2008.
The PGMs were slightly less affected – platinum was last down $8 at $1,122/1,127 per ounce after hitting its lowest since March 31 at $1,121 while palladium meanwhile was up $2 at $767/772.
(Additional reporting by Ian Walker, editing by Mark Shaw)
The post Comex, spot gold prices drop through support at $1,180/oz appeared first on The Bullion Desk.
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