Gold continued to fall in Tuesday afternoon trading – a stronger dollar and cautious optimism over Greece dampened sentiment across the precious metals.
Spot gold was last at $1,178.00/1,178.80 per ounce, down $7.40 on Monday’s close and just off an intraday and multi-session low of $1,176.30. And having withstood most of the downside pressure in recent sessions, silver corrected lower – it was last at a two-month low of $15.76/15.81, down 36 cents.
The dollar up around 1.4 percent at 1.181 against the euro, which partly reflects cautious optimism about the likelihood of Greece securing a deal with its creditors and avoiding a default.
While yesterday’s meeting of eurozone finance ministers broke up without a deal being secured to free up the funds Greece needs to avoid defaulting on its debts, there was talk that a breakthrough has been made. Investors have since flocked to riskier assets, leaving gold in the doldrums.
European indices rose further today – the Euro Stoxx is 0.83 percent higher, having closed up 4.1 percent on Monday, while the Cac 40 is up 1.18 percent and the Dax 0.72 percent.
If eurozone finance ministers approve a cash-for-reform package on Wednesday evening, 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.
The dollar shrugged off positive European manufacturing data this morning and a soft US manufacturing PMI, durable goods orders and HPI data this afternoon. New homes sales and the Richmond manufacturing index were both better than expected, however.
The PGMs were slightly better – platinum was last up $10 at $1,064/1,069 per ounce while palladium climbed $2 to $694/699.
(Editing by Mark Shaw)
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