Gold plunges on rumours of last-minute deal between Greece and creditors

Gold plunges on rumours of last-minute deal between Greece and creditors

30 June 2015, 14:57
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Gold prices extended losses to trade near a three-week low on Tuesday, after reports said Greek Prime Minister Alexis Tsipras might be reconsidering the latest proposal from the country’s international creditors.

Gold for August delivery on Comex  dropped $7.30, or 0.6%, to $1,171.70 an ounce, while September silver dipped 3 cents, or 0.2%, to $15.66 an ounce.

Copper for September delivery slumped 2.2 cents, or 0.84%, to trade at $2.611 a pound.

October platinum fell $1.50, or 0.1%, to $1,080.80 an ounce, while September palladium climbed $5.80, or 0.9%, to $672.25 an ounce.

Meetings were underway to attempt to find a solution to break the standoff by midnight, when Greece’s bailout program officially expires, Greece's local media say.

Meanwhile, the Guardian reports that rumours are mounting that the Greek prime minister has not only accepted a deal but will travel to Brussels, possibly as early as this evening, to discuss it with senior EU officials.

The agreement, based on reforms proposed by EU commission president Jean-Claude Juncker late last night, is believed to have been rubber stamped at a meeting of senior government official held at the prime minister’s office, the Megaron Maximou, this morning.

Indeed, the Greek prime minister’s office has announced that Tsipras has had telephone contact today with EU president Jean-Claude Juncker, the head of the European Central Bank, Mario Draghi and European parliament president Martin Schultz. However, as Reuters has reported, German Chancellor Angela Merkel said she did not see any clear signs of a last-minute deal

On Monday Greece shut down its banks, with lenders ordered to stay closed for six days, until after the referendum is held, following a decision by the ECB not to extend a lifeline of emergency funding.

Gold prices have been down almost 2% in June amid signs that the U.S. economy is gaining momentum after a recent bout of weakness, supporting the case for higher interest rates later this year.
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