Gold price drops below $1,200, focus on Greece

New York (Jun 22) Gold weaker on Greece optimism.  Positive talks over the weekend sparked a wave of rising optimism regarding the EU-Greece debt renegotiation. However, the Eurogroup meeting held this afternoon yield nothing but the usual wishes of an eventual favourable outcome.

The EU Leaders Summit is due later, and despite EU officials already argued against clinching a deal tonight, it seems the optimism of market participants remain intact, hurting the demand for the safe haven metal.

Gold significant levels

As of writing Gold is down 1.52% at $1,183.60 and a drop below $1,173.90 (low Jun.17) would open the door to $1,171.90 (low Jun.15) and finally $1,162.10 (low Jun.5). On the upside, the immediate resistance lines up at $1,209.00 (high May 25) followed by $1,215.30 (high May 22) and then $1,219.40 (high May 13).

Source: FXstreet