Gold dips as combo of delayed Greek resolution, dollar weigh on complex

Otmane El Rhazi from The Bullion Desk.

Gold prices declined on Tuesday as Greece talks were tabled till Thursday and new US data buoyed the dollar.

Gold for August delivery on the Comex division of the New York Mercantile Exchange fell $7.50 to close at $1,176.60 per ounce. Trade ranged from $1,175.60 to $1,187.70.

In Europe, if eurozone finance ministers approve a cash-for-reform package on Wednesday evening on Wednesday, EU leaders could sign it off at a meeting on Thursday, releasing billions of euros in loans for Greece and preventing a default – for now.

Although a deal is closer than at any time in the past five months, there are concerns that the latest set of proposals will not return the country, which still owes the ECB around 320 billion euros and owes billion to the ECB and the EU, to growth.

And for now, Greece’s banks are strapped for cash, prompting the ECB to raise its emergency lending limits for the fourth time in six days.

“The toing and froing in the Greek debt crisis is also keeping the precious metal markets on tenterhooks,” Commerzbank said. “Although no final agreement was reached between the highly-indebted country and its creditors yesterday, meaning that the cliff-hanger will continue for the time being, gold found itself under noticeable pressure”

In US data day, core durable goods orders month-over-month in May was up 0.5 percent, yet just off predications of 0.6 percent. May durable goods orders month-over-month were down 1.8 percent, with estimates pegging a decline of 0.6 percent. HPI month-over-month in May climbed 0.3 percent, yet was below predications of a 0.6 percent increase.

New home sales in May were 546,000, above forecasts of 524,000 and the single best month since February 2008. The Richmond manufacturing index for June was at 6, doubling predictions of 3.

Investors today piled money into the dollar, with the greenback currently 1.6 percent stronger at 1.1160 against the euro, while the Dow Jones industrial average and S&P were each up 0.1 percent.

As for the other precious metals, Comex silver for July delivery was down 42.2 cents at $15.720 per ounce. Trade has ranged from $15.670 to $16.175.

Platinum futures for July delivery on the Nymex were up $4.80 at $1,065.40 per ounce, while the most-actively traded palladium contract was at $695.80, up $0.35.

(Editing by Tom Jenneman)

The post Gold dips as combo of delayed Greek resolution, dollar weigh on complex appeared first on The Bullion Desk.