Gold was lower in the Asian trading hours on Tuesday despite Greece edging closer to a debt default, raising questions of the physical demand for the yellow metal.
The spot gold price was last at $1,176.5/1,177.4, down $3.50 on Monday’s close. Trade has ranged from $1,176.5 to $1,181 so far.
“The safe haven bid for gold has surprisingly failed to materialise, although participants should expect an official Grexit, should it happen, to provide support,” MKS said.
Greece’s future in the eurozone is hanging in the balance – Greece pulled out of emergency meetings with creditors over the weekend and called for a referendum on Sunday to vote on the proposed bailout terms.
Greek banks remain closed while the country has notified the IMF it will not be paying the 1.6-billion-euro loan instalment due today.
“Investors are simply not that interested in gold at present and physical demand is weak,” William Adams, FastMarkets head of research, said.
“It maybe that the correction in Chinese equities leads to some money moving back into physical gold but that might take some time to be felt,” he added.
Chinese equities officially entered a bear market after dropping another 3.56 percent on Monday, MKS noted.
A slew of numbers is due from the eurozone and the US today. US non-farm payroll data on Thursday – released a day early due to the July 4 holiday – will be the key data focus for markets this week.
As for the other precious metals, silver was little changed at $15.64/15.69. Platinum at $1,079/1,084 fell $2 and palladium was down $1 at $664/670.
On the Shanghai Futures Exchange (SHFE) gold for December delivery was unchanged at 238 yuan per gram.
The post Gold price dips despite Grexit fears appeared first on The Bullion Desk.
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