Gold moved higher in the Asian trading hours on Monday after Greece failed to reach a deal with its international lenders to avert a default.
The spot gold price was last at $1,181/1,182 per ounce, up $6 on Friday’s close. Trade has ranged from $1,180 to $1,188 so far.
Over the weekend, Greek Prime Minister Alexis Tsipras broke off debt talks and called for a national referendum in Greek parliament on July 5 regarding the bailout terms that have been proposed by Greece’s creditors.
Greece has also declared capital controls with the closure of banks, and limits on withdrawals as the European Central Bank (ECB) decided not to increase its emergency liquidity assistance (ELA) to Greek banks beyond current levels.
Greece now risks default with a 1.6 billion euros payment due to the International Monetary Fund (IMF) on Tuesday.
“The only thing that we know for sure is that uncertainty is high, and in that environment, many markets will catch a safe haven bid,” ANZ said.
Elsewhere, the People’s Bank of China cut the one-year lending rate by 25 basis points to 4.85 percent – its fourth cut since November – and lowered the amount of reserves certain banks are required to hold by 50 basis points. The one year deposit rate was also lowered by 25 basis points, to two percent.
The move followed a nearly 20 percent drop in China’s stock market over the past two weeks.
Today’s data includes German preliminary CPI, Spanish flash CPI and from the US, pending home sales.
As for the other precious metals, silver was largely unchanged at $15.87/15.92. Platinum at $1,070/1,080 was down $8, while palladium at $673/678 fell $3.
On the Shanghai Futures Exchange (SHFE) gold for December delivery was unchanged at 239 yuan per gram.
The post Gold climbs on safe-haven demand as Greece fails to reach a deal appeared first on The Bullion Desk.
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