Gold dips even though Greece nears default

FXStreet (Mumbai) – Gold prices weakened during the European session even though Greece default appears unavoidable as the deadlock between Greece and its international creditors continues on.

Gold lacks safe haven demand

The metal along with other safe haven assets like the treasuries, Swiss franc has not been able to strengthen on the safe haven appeal. Moreover, the markets appear convinced at the moment that a last minute deal would be reached before the current bailout program for Greece expired at midnight tonight.

Meanwhile, the strength in the USD index and the rate outlook in the US is capping gains the yellow metal. It remains to be seen how the metal performs as we move closer to the Greek default scenario.

Gold Technical Levels

The metal currently trades at USD 1170.80; down 0.70% on the day. The immediate support is located at 1165, under which the metal could drop to 1150. On the other hand, a break above 1180 could see the pair re-test 1190.00.

Gold prices weakened during the European session even though Greece default appears unavoidable as the deadlock between Greece and its international creditors continues on.

(Market News Provided by FXstreet)