Gold prices dropped in the Asia trading hours on Tuesday as investors favoured equities over safe haven assets after Greece and its creditors reached a deal on Monday.
Spot gold price was last at $1,155.8/1,156.6 per ounce, down $1.2 from Monday’s close.
German Chancellor Angela Merkel, French President François Hollande and Greek Prime minister Alexis Tsipras agreed a cash-for-reforms deal worth up to 86 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 regime but has to be signed off by the Greek parliament as well as other countries.
“Greek bailout agreement inches closer as the markets await the Greek parliament’s decision on Wednesday,” said MKS PAMP Group.
In data, US dollar index climbed 0.02 to 96.82 while the key Asia stock indexes were mixed – NIKKEI 225 rose 1.61 percent by midday while Hang Seng Index and CSI300 Index slipped less than one percent.
Meanwhile, today’s key data includes UK’s consumer price index (CPI), UK’s inflation report hearings and US retail sales figure.
As for the other precious metals, spot silver fell $0.04 at $15.40/15.45 per ounce, platinum climbed $7 to $1033/1038 while palladium rose $3 to $657/663.
On the Shanghai Futures Exchange, gold for December delivery was down 1.6 yuan at 233.65 yuan per gram.
The post Gold prices under pressure over Greek deals and stronger dollar appeared first on The Bullion Desk.
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