The gold price fell to the lowest point since March as failed talks in Bruseels between Greece and its creditors spurred a a sale-off in the precious metals complex.
Gold for August delivery on the Comex division of the New York Mercantile Exchange was last down $20.40, or 1.7 percent, at $1,152.80 per ounce. Earlier, the price touched $1,146.80, the lowest point since March 17 .
The eurogroup meeting today produced no resolution. A phone conference is scheduled for tomorrow, while a 3.6 billion euro repayment owed to the European Central Bank (ECB) is due July 20.
An agreement could be easier to reach as Yanis Varoufakis, the abrasive Greek finance minister, announced his resignation on Monday. A failure to repay their loans would likely result in Greece abandoning the euro and issuing its own currency.
“Tempting as some may find it to toss the Greeks out, we suspect that by the end of the week, some sort of an interim compromise will be reached to keep Greece limping along, in which case we could see a rather sharp short-covering bounce set in over a number of complexes,” Edward Meir, an analyst at INTL FCStone, said.
Meanwhile in US equities, the Dow Jones industrial average and S&P were down 0.5 percent and 0.4 percent respectively, while the dollar was one percent stronger at $1.0946 against the euro.
In US data, jolts job openings in May was 5.36 million, above forecasts of 5.3 million. IBD/TIPP economic optimism in July was at 48.1, off predictions of 48.9
As for other precious metals, Comex silver for September delivery was last down 67.8 cents to $15.080 per ounce. Trade has ranged from $14.790 to $15.710.
Platinum for October delivery fell $22.70 to $1,043.60 per ounce, while the most actively traded palladium contract was at $652.70, down $23.45.
(Editing by Tom Jennemann)
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