Investing.com – Gold futures were down for a third day on Monday, dropping to a six-week low, as the U.S. dollar gained amid uncertainty ahead of a key parliamentary vote on austerity measures in Greece later in the week
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,495.65 a troy ounce during late Asian trade, slumping 0.5%.
It earlier fell as much as 0.7% to trade at USD1,491.85 a troy ounce, the lowest price since May 20.
The euro dropped to a seven-day low against the U.S. dollar, as markets awaited further developments in regards to Greece’s sovereign debt crisis.
The country’s parliament was expected to start a three-day debate later Monday, ahead of a vote on a EUR28.4 billion austerity package on Wednesday.
On Sunday, Greece's deputy Prime Minister Theodoros Pangalos said that lawmakers may block some of the reforms, but added that parliament would probably back an overall austerity package in order to stave off a sovereign debt default.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to trade at 76.37, after rising earlier to 76.58, the highest since April 1.
Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal.
A weakening euro and stronger dollar have weighed on gold instead.
Meanwhile, a sharp decline in crude oil prices reduced concerns over oil-led inflation, diminishing the appeal of the precious metal as a hedge against rising energy prices.
Crude oil for delivery in August sank 1.4% to trade at a four-month low of USD89.99 a barrel on the New York Mercantile Exchange.
Elsewhere, silver for September delivery tumbled 1.6% to trade at a six-week low of USD33.76 a troy ounce during late Asian trade, while copper for September delivery declined 0.83% to trade at USD4.071 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,495.65 a troy ounce during late Asian trade, slumping 0.5%.
It earlier fell as much as 0.7% to trade at USD1,491.85 a troy ounce, the lowest price since May 20.
The euro dropped to a seven-day low against the U.S. dollar, as markets awaited further developments in regards to Greece’s sovereign debt crisis.
The country’s parliament was expected to start a three-day debate later Monday, ahead of a vote on a EUR28.4 billion austerity package on Wednesday.
On Sunday, Greece's deputy Prime Minister Theodoros Pangalos said that lawmakers may block some of the reforms, but added that parliament would probably back an overall austerity package in order to stave off a sovereign debt default.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to trade at 76.37, after rising earlier to 76.58, the highest since April 1.
Although gold’s appeal as a safe-haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal.
A weakening euro and stronger dollar have weighed on gold instead.
Meanwhile, a sharp decline in crude oil prices reduced concerns over oil-led inflation, diminishing the appeal of the precious metal as a hedge against rising energy prices.
Crude oil for delivery in August sank 1.4% to trade at a four-month low of USD89.99 a barrel on the New York Mercantile Exchange.
Elsewhere, silver for September delivery tumbled 1.6% to trade at a six-week low of USD33.76 a troy ounce during late Asian trade, while copper for September delivery declined 0.83% to trade at USD4.071 a pound.