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Gold dips as dollar reigns amid Greek uncertainty

Published 02/08/2012, 08:50 PM
Updated 02/08/2012, 08:52 PM
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Investing.com - Gold prices dipped in Asian trading Thursday as investors stocked up on dollars to await a concrete announcement out of Greece that the country has agreed to austerity measures required for tapping fresh aid funds, which has yet to occur.

A rising dollar often sends gold falling as the two assets normally trade inversely from one another.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,729.95 a troy ounce, down 0.08%.     

Gold futures were likely to test support at USD1,712.65 a troy ounce, Tuesday's low, and resistance at USD1,765.85, Friday's high.

Greece is seeking EUR130 billion in assistance funding if it is to avoid a messy default in March.

To get that money, the country must restructure its debts with private creditors as well as agree to austerity measures from multilateral lenders to tap those funds.

Multilateral organizations such as the International Monetary Fund, the European Union and the European Central Bank are demanding that Greece agree to politically unpopular austerity measures such as minimum wage cuts and pension reforms in exchange for bailout money, and the country is close to accepting terms.

Reports emerged, however, that Athens has agreed to slash public-sector payrolls, but some in the country's ruling coalition balked at pension reforms, thus throwing a formal agreement into delay anew.

Until that bailout money begins flowing, markets will remain on edge, and such sentiment sent investors stocking up on dollars as a safety move on in Asia early Thursday, selling gold in the process.

Elsewhere on the Comex, silver for March delivery was up 0.40% and trading at USD33.838 a troy ounce, while copper for March delivery was down 0.21% and trading at USD3.892 a pound.








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