Gold under pressure, as risk appetite increases; U.S. stocks open higher, Nasdaq hits record

Gold under pressure, as risk appetite increases; U.S. stocks open higher, Nasdaq hits record

22 June 2015, 15:41
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Gold prices edged lower in early U.S. trading Monday, as appetite for risk now seems to be increased.

August Comex gold was last down $9.00 at $1,192.90 an ounce. July Comex silver was last up $0.016 at $16.125 an ounce, Kitco News reported.

Global stocks, the euro and peripheral euro zone bonds all rose today, lifted by hopes that a deal will be reached today at an emergency summit in Brussels. Over the weekend, the Greek authorities submitted a fresh proposal which included tax increases and spending cuts to hit budget targets, and the package has been met with some optimistic feedback.

Meanwhile, on Monday the European Central Bank had to increase the emergency lending mechanism to Greece due to the surge in public withdrawals of cash from banks.

China markets were closed Monday due to a holiday.

The U.S. dollar index is modestly higher to start the trading week, while the single currency slightly declined at the open of the U.S. trade.

Investors now await U.S. economic data later in the day which includes the Chicago Fed national activity index and existing home sales.

In the meantime, Wall Street opened higher, pushing the Nasdaq Composite to a record which jumped 34 points, or 0.7% to 5,151, the highest level ever.

Upbeat sentiment appears to be linked to hopes that Greece and its lenders will reach a deal to avert a default.

The S&P 500 opened 12 points, or 0.6%, higher at 2,122. The Dow Jones Industrial Average jumped 113 points, or 0.6%, to 18,129 at the open.

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