Gold hovered around the key $1,200-an-ounce level on Monday, its lowest in seven weeks, as support for the safe-haven metal eased after a deal was struck over Greece's debt, while the absence of major consumer China also took a toll. Spot gold was little changed at $1,202.70 an ounce by 0749 GMT, after dropping to $1,197.95 in the previous session as safe-haven bids receded. The metal recorded its fourth straight weekly decline on Friday.
Eurozone finance ministers reached an agreement to extend heavily indebted Greece's financial rescue by four months, officials on both sides said. The deal removes the immediate risk of Greece running out of money next month and possibly being forced out of the single currency area. "With China temporarily out of the market and apparent progress on the Greek bailout, the path of least resistance appears lower for gold and also silver," said HSBC analyst James Steel.
Technically, gold will face resistance at $1,215, while support will come in at $1,197, followed by $1,190, MKS Group said. China, the No 2 gold consumer, has been shut since Wednesday for the Lunar New Year holiday, removing a key support for bullion. Chinese buying typically provides a floor for falling gold prices, but their absence along with a strong dollar has hurt the yellow metal.
Comments
Comments are closed.