Gold closed lower on Tuesday as “Grexit” fears boosted the dollar, which weighed on the precious metals complex.
Gold for August delivery on Comex division of the New York Mercantile Exchange fell $4.90 to close at $1,180.90 per ounce. Trade ranged from $1,175.40 to $1,187.40.
After negotiation talks in Brussels deteriorated in less than an hour, there is a growing sentiment that Greek will exit the eurozone. The Mediterranean country owes 1.6 billion euros to the International Monetary Fund (IMF) by the end of the month.
Thursday’s eurogroup meeting is now being proposed as the next opportunity for negotiations, though this latest setback puts the country one step closer to a default that may seal an exit from the bloc.
In data today, May US building permits came in at 1.28 million, above forecasts of 1.11 million. However, housing starts in May weere 1.04 million, below estimates of 1.10 million.
“The dollar strengthened somewhat following the May building starts (slightly down) and building permits (surprisingly high) but most attention is really focused on the Euro which seems to have reached a hiatus pending further talks with Greece,” Sucden Financial said in a note.
The dollar was last 0.4 percent stronger at 1.1242 against the euro, while the dollar index was at 95.016, up 0.2 percent.
Today also marks the beginning of the FOMC’s two day meeting. The US central bank is not expected to raise interest rates but a increase is likely to occur later in the year with most speculators tabbing September.
In equities, the Dow Jones industrial average and S&P were up 0.7 percent and 0.6 percent respectively.
As for the other precious metals, Comex silver for July delivery was down 1.2 cents at $15.965 per ounce. Trade has ranged from $15.850 to $16.105.
Platinum futures for July delivery on the Nymex were down $9.30 at $1,079.30 per ounce, while the most actively traded palladium contract was at $732.45 per ounce, down $1.70.
(Editing by Tom Jennemann)
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