Gold inches up as markets await Greece developments
Investing.com
Published Jun 23, 2015 03:27AM ET
Gold edges higher with Greece developments in focus
Investing.com - Gold prices edged higher on Tuesday, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid hopes that a deal was within sight.
Euro zone finance ministers failed to reach agreement over Greece’s bailout at an emergency meeting on Monday, but indicated that a final deal could be made later this week.
Eurogroup head Jeroen Dijsselbloem said new reform proposals from the Greek government were “broad and comprehensive,” and a good basis to restart stalled negotiations.
But German Chancellor Angela Merkel and International Monetary Fund head Christine Lagarde both warned that there was still a lot of work to be done.
Greece’s existing bailout is set to expire at the end of this month, when it must also repay €1.6 billion to the IMF. A default by Greece could trigger the country’s exit from the euro zone.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange tacked on $1.60, or 0.14%, to trade at $1,185.70 a troy ounce during European morning hours.
Futures were likely to find support at $1,173.90, the low from June 17, and resistance at $1,205.70, the high from June 18.
A day earlier, gold tumbled $17.80, or 1.48%, to close at $1,184.10 after data showed that U.S. existing home sales in May rose to the highest level since November 2009.
The National Association of Realtors said that existing home sales increased 5.1% to 5.35 million units last month from 5.09 million in April. Analysts had expected existing home sales to rise 4.4% to 5.26 million units in May.
The upbeat data boosted optimism over the health of the economy and supported the case for a U.S. interest rate hike later this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.