A hitch in the planned deal between Greece and its private creditors pulled down the value of the shared currency of the European Union on Friday, also dragging down the price of gold futures, according to Reuters.
A party leader in the Aegean nation spoke of his inability to support the deal that helps ensure the nation pays its financial obligations. Finance ministers from the euro zone nations are in pursuit of additional measures from the debt-hobbled nation prior to granting approval for its second bailout since June 2010.
"Today, the market is in risk-off mood again with stock markets weaker as well," trader Alex Zumpfe with Heraeus precious metals house told Reuters. "Gold is facing some selling pressure after support levels didn't trigger sufficient buying interest. Physical buying evolved on the lows but were obviously not strong enough to support the market."
At 9:14 a.m. on Friday, gold futures dropped 1.6 percent, a $27.90 slide to $1,713.30 per troy ounce.
Bloomberg reports Jean-Claude Juncker, prime minister of Luxembourg, said the finance ministers requested Greece enact the most recent austerity cuts into law. Parliamentary votes are slated to commence this weekend in Greece regarding its austerity measures.
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