The gold price remained soft on Monday afternoon, having been pressured lower by news that Greece has agreed a third bailout package with its creditors.
Spot gold was last at $1,156.80/1,157.60 per ounce, down $5.50 on Friday’s close. It bottomed out at session lows of $1,151.00, not far from its four-month and eight-month nadirs at $1,147.20 and $1,142.90 respectively.
Overnight, German Chancellor Angela Merkel, French President François Hollande and Greek Prime minister Alexis Tsipras agreed a cash-for reforms deal worth up to 87 billion euros over the next three years.
The deal, unanimously backed by other eurozone leaders, requires an extensive overhaul of the country’s tax and pension regimes. This may be a hard sell to the Greek public, which voted against creditors’ austerity conditions in the July 5 referendum.
The euro shed more than one percent today – it was last at 1.1020 against the dollar – while world equity markets flourished when investors returned to riskier assets. In Europe, the Euro Stoxx was up 1.75 percent and the Dax 1.5 percent while in the US the S&P 500 was up nearly one percent.
Other metals were mixed – silver followed gold lower to $15.45/15.50 per ounce, down seven cents, while Platinum climbed $4 to $1,027/1,032 and palladium was $15 higher at $660/665.
(Editing by Mark Shaw)
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