On Tuesday the dollar extended gains against its peers, after data signaled that the U.S. trade deficit expanded less
than expected in May and as demand for the safe-haven dollar remained
supported amid ongoing Greek debt worries.
On Tuesday the U.S. Bureau of Economic Analysis reported that the U.S. trade deficit climbed to $41.87 billion in May from $40.7 billion in April, whose figure was revised from a previously reported deficit of $40.88 billion.
Economists had expected the U.S. trade deficit to expand to $42.6 billion in May.
The U.S. dollar index, measuring the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.90% at 97.166.
EUR/USD was last at 1.0941 losing 1.04% as Greek Prime Minister Alexis Tsipras was expected to present new proposals to euro zone finance ministers later in the day, ahead of a meeting of European officials to discuss the aftermath of Sunday’s referendum in Greece.
Eurozone finance ministers are meeting in Brussels, with the gathering to be followed by a summit of the leaders of the eurozone countries.
Peter Hug, global trading director at Kitco Metals, said that it seems that the EU wants to keep Greece as a member, "but the big cats need to ensure that if a restructuring deal is offered to the Greeks, that such a deal doesn’t whet the appetites of the Spanish, Italians, Portuguese or the Irish."
Gold failed to return investors' appeal on Tuesday, as they were looking for signs of physical demand.
Gold for August delivery on Comex fell $12.80, or 1.1%, to $1,160.40 an ounce, while September silver dropped 25.3 cents, or 1.6%, to $15.50 an ounce.
In other metals trade, October platinum dropped $19, or 1.8%, to $1,047.30 an ounce, while September palladium lost $14.05, or 2.1%, to $662.10 an ounce.
September copper dipped 10.05 cents, or 3.8%, to $2.4375.
U.S. stocks opened little changed. The S&P 500 was up
less than a point at 2,070. The Nasdaq Composite began the day off by 2
at 4,988. The Dow Jones Industrial Average rose 6
points, or 0.1%, to 17,699.
