Gold Falls as USD Rises and Greece in Focus

Gold eased on Monday as the dollar rose and as European equities jumped on possible signs of progress in Greek debt talks, which curbed safe-haven demand for the metal.

Spot gold had slipped 0.6 percent to $1,192.01 an ounce, about 1 percent below its highest level since May 26 at $1,205.50 hit last week after a dovish Federal Reserve message on the timing of a U.S. interest rate rise.

U.S. gold futures for August delivery were down $9.90 at $1,192.00 an ounce.

Gold is typically regarded as a good bet in times of financial and economic uncertainty, but traders have seen modest demand over the past few days from investors concerned about the Greek debt crisis.

“It is difficult to call on Greece, we haven’t seen much buying above $1,200 and wider financial markets are hopeful that there will be a last-minute solution that will avoid a Greek default,” Societe Generale analyst Robin Bhar said.

via CNBC

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