Gold price dips in Asia as investors await leadership talks on Greece debt
Singapore (Jun 22) Gold prices dipped in early Asia on Monday ahead of a key meeting on Greece's debt bailout.
Markets in China are to remain closed for the Dragon Boat Festival holiday.
European leaders are to hold emergency talks in Brussels about Greece's bailout agreement, which is due to expire on June 30.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery fell 0.27% to $1,198.70 a troy ounce.
Also on the Comex, silver futures for July delivery ended Friday's session fell 0.23% at $16.072 a troy ounce.
Elsewhere in metals trading, copper for July delivery fell 0.01% at $2.571 a pound.
Last week, gold ended Friday's session little changed near a four-week high as investors pushed back expectations for higher U.S. interest rates and amid mounting fears over a potential Greek debt default.
Gold rallied after the Federal Reserve lowered both its U.S. growth forecast and its interest-rate projections following the conclusion of its policy meeting on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.
Fed Chair Janet Yellen said the central bank wanted to see 'more decisive evidence' of sustained growth before raising rates, but acknowledged that the economy has 'expanded moderately' after a weak first quarter.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Meanwhile, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid growing concerns that the country could default on its debt be forced out of the euro zone.
Greece is running out of time before it owes the International Monetary Fund a bundled loan payment of €1.5 billion on June 30. At the same time, the remaining €7.2 billion of a €240 billion stimulus package from its international creditors is set to expire at the month.
All 28 members of the European Union are scheduled to be present at an emergency summit on Monday, in what could be Greece's final opportunity to avoid a default. Failure to strike a deal would result in Greece defaulting on payments and exiting the euro zone.
Also on Monday, the U.S. is to release private sector data on existing home sales.
Source: Investing.com
