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Gold continues falling as Greek deadlock drags on

Published 05/14/2012, 08:53 PM
Updated 05/14/2012, 08:55 PM
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Investing.com - Gold prices fell in Asian trading on Tuesday as a Greek deadlock over appointing a coalition government entered a new day with no end sight, fanning fears Greece is growing dangerously close to leaving the eurozone.

Fears sent investors favoring the safety of the greenback, which sent gold falling, tracking an embattled euro.
 
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 0.24% at USD1,557.25 a troy ounce.

Gold traded at a low of USD1,555.95 a troy ounce and hit a high of USD1,559.35 a troy ounce during the session.

Gold futures were likely to test support at USD1,523.95 a troy ounce, the low from Dec. 29, and resistance at USD1,639.05, the high from May 8.

Greece continued to dominate headlines early Tuesday.

Political leaders remain in a stalemate and unable to patch together a government, stoking fears the standoff will force a new round of elections that could possibly open the door to an eventual exit from the currency zone.

Growing uncertainty has sent anxious investors snapping up dollar positions as a safety play, which has sent the yellow metal tanking.

Gold and the dollar tend to trade inversely from one another.

Elsewhere on the Comex, silver for July delivery was down 0.63% and trading at USD28.173 a troy ounce, while copper for July delivery was up 0.29% and trading at USD3.527 a pound.







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