Euro zone leaders vowed not to allow Greece to slip into default as oil futures dipped, detracting from the yellowish metal's allure as a haven asset. Gold futures were hovering around $1,500 per troy ounce on Monday morning.
"In addition to the Greek rescue plan, gold is falling on the back of the strengthening dollar," Hwang Il Doo, a senior trader at Korea Exchange Bank Futures in Seoul, told the news service. "Oil tumbled, lowering inflation pressure."
At 7:58 a.m. on Monday, gold futures edged up in value 0.03 percent, a 50 cent climb to $1,501.40 per troy ounce.
Crude oil, which has fallen four straight weeks, slipped 2 percent last week.
Greece Prime Minister George Papandreou this week faces one of his toughest challenges as the leader of the Aegean nation, the Telegraph reports. The already embattled leader is charged with conjuring as much money as he can and he has brought that effort to the nation's upper class as part of an effort to get them to pay their fair share.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.