Investing.com – Gold futures extended sharp losses on Monday, as the safe haven appeal of the precious metal was reduced after International Monetary Fund officials said Greece was likely to receive its next tranche of aid later this month.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,834.85 a troy ounce during U.S. morning trade, tumbling 1.2%.
It earlier fell as much as 1.83% to trade at a daily low of USD1,825.85 a troy ounce.
Fears over an imminent Greek debt default eased after the Wall Street Journal reported that senior International Monetary Fund officials said Greece would receive the next tranche of bailout loans later this month.
The report came after Greece’s government said Sunday that it will impose a new property tax to cover a EUR2 billion gap in its budget targets this year.
While the two IMF officials dismissed speculation of an impending Greek default or exit from the euro zone, they added that the next round of aid scheduled for December would be more difficult to arrange unless budget targets are met.
Meanwhile, gold traders were awaiting speeches from Federal Reserve Bank of Dallas President Richard Fisher and St. Louis Fed Chief James Bullard later in the day.
Their comments will be closely watched for any clues regarding further easing measures.
Despite the recent pullback in gold prices, German lender Commerzbank said, "The same factors that strengthened gold's price rally before are still intact in our opinion."
"Besides the persistent debt problems in euro-zone countries and the threat of the U.S. economy sliding into recession, interest rates are set to remain at a very low level for an extended period," the lender said in a report released earlier.
Elsewhere on the Comex, silver for December delivery dropped 1.2% to trade at USD41.12 a troy ounce, while copper for December delivery fell 1.23% to trade USD3.957 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,834.85 a troy ounce during U.S. morning trade, tumbling 1.2%.
It earlier fell as much as 1.83% to trade at a daily low of USD1,825.85 a troy ounce.
Fears over an imminent Greek debt default eased after the Wall Street Journal reported that senior International Monetary Fund officials said Greece would receive the next tranche of bailout loans later this month.
The report came after Greece’s government said Sunday that it will impose a new property tax to cover a EUR2 billion gap in its budget targets this year.
While the two IMF officials dismissed speculation of an impending Greek default or exit from the euro zone, they added that the next round of aid scheduled for December would be more difficult to arrange unless budget targets are met.
Meanwhile, gold traders were awaiting speeches from Federal Reserve Bank of Dallas President Richard Fisher and St. Louis Fed Chief James Bullard later in the day.
Their comments will be closely watched for any clues regarding further easing measures.
Despite the recent pullback in gold prices, German lender Commerzbank said, "The same factors that strengthened gold's price rally before are still intact in our opinion."
"Besides the persistent debt problems in euro-zone countries and the threat of the U.S. economy sliding into recession, interest rates are set to remain at a very low level for an extended period," the lender said in a report released earlier.
Elsewhere on the Comex, silver for December delivery dropped 1.2% to trade at USD41.12 a troy ounce, while copper for December delivery fell 1.23% to trade USD3.957 a pound.