Gold remained in a malaise on Monday as investors preferred equities and risk assets following the announcement of a potential agreement on a Greek debt.
Gold for August delivery on the Comex division of the New York Mercantile Exchange was last down $2.60, or 0.2 percent, at $1,155.30 per ounce. Trade has ranged from $1,149.80 to $1,163.90.
Following a marathon negotiating session, Greece and its creditors on Monday announced a cash-for-reforms deal totalling 87 billion euro over the next three years. The reforms specifically call for an overhaul of the country’s tax programmes and additional pension reform.
“Precious metals were softer following the news that some sort of deal (again) has been made to excuse the Greek debt for the time being,” Triland Metals said. “Gold hadn’t really reacted much to the upside during the kerfuffle over the last few weeks and this remains a market that is selling off lightly on short and medium term rallies but without the downside momentum of recent years.”
In data, China’s trade surplus narrowed to $46.5 billion from $59.5 billion in May. Exports rose for the first time in four months, up 2.8 percent, while imports fell for the eighth consecutive month, down 6.1 percent. Unwrought copper imports fell 2.8 percent to 350,000 tonnes in June, the lowest in four months.
Meanwhile in equities, the Dow Jones industrial average and S&P were up one percent and 0.9 percent respectively, while the dollar was 1.3 percent stronger at $1.1014 against the euro.
As for the other precious metals, Comex silver for September delivery was down 3.1 cents at $15.450 per ounce. Trade has ranged from $15.270 to $15.900.
Platinum futures for October delivery on the Nymex were up $2.40 at $1,034.70 per ounce while the most actively traded palladium contract was at $656.75, up $6.40.
(Editing by Tom Jennemann)
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