Gold News: Prices Slip Further After Greek Deal
Gold News
Gold prices fell even further on Monday as investors reduced their investments in the safe haven asset in the wake of the news that Greece had reached an agreement to remain in the Eurozone. This was the third straight session that gold prices dropped, with gold for August delivery settling at $1,155.40. This is the lowest level since July 7th, but gold did find support at the key levels $1,150 and $1,155.
Gold has been under pressure in recent weeks as worries of a Greece exit led investors to haven assets like the dollar and treasury bonds. A stronger dollar makes holding gold more expensive for holders of foreign currency. The stronger dollar and the unwinding of the economic crisis have pushed investors away from gold towards more risky investments like stocks, which can push the precious metal down even further.
Investors have stayed away from gold in recent weeks because of the strong dollar and the prospect of an interest rate hike from the Federal Reserve later this year. On Friday, Fed chairman Janet Yellen said that the US Central Bank would raise interest rates this year, either in September of December. The increase in borrowing costs will continue to push investors away with gold, with prices falling to $1,100 for the fourth quarter.
