Investing.com - Gold prices fell as investors flocked to the safe-haven dollar on Tuesday as policymakers held off on disbursing financial aid to Greece.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.49% at USD1,722.45 a troy ounce, up from a session low of USD1,721.35 and down from a high of USD1,726.95 a troy ounce.
Gold futures were likely to test support at USD1,683.55 a troy ounce, the low of Nov. 6, and resistance at USD1,737.95, Monday's high.
Greece recently passed an austere budget for next year and also pushed through politically unpopular budget cuts and tax hikes as required to tap a EUR31.5 billion tranche of financial aid.
Eurozone finance ministers met earlier to review the details of Greece's progress but have yet to free up the money for Athens, which sent investors snapping up safe-haven dollar positions, a recipe for falling gold prices.
Gold and the dollar normally trade inversely.
Eurozone finance ministers have given Athens two years to meet austerity targets though the country is quickly running out of funding and will need a tranche of aid soon.
Eurozone policymakers are scheduled to meet again to discuss Greece's finances on Nov. 20.
Greece will not default until then as it can roll over debts in the meantime.
While the tranche of aid will end shorter-term solvency issues for Greece, the country and creditors must still agree on ways to lower longer-term debt burdens.
Fears that the U.S. risks falling into an avoidable recession continued to quash appetite for risk, including gold.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession if left unaddressed by Congress.
Lawmakers have expressed confidence that they'll avoid partisan bickering and cut a deal, but until an announcement hits the wire, investors will remain wary.
Even if a compromise steers the country away from recession, a deal could still crimp growth somewhat, which could bruise stocks and leave investors seeking safe harbor in the dollar.
Elsewhere on the Comex, silver for December delivery was down 0.97% and trading at USD32.207 a troy ounce, while copper for December delivery was down 0.48% and trading at USD3.450 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.49% at USD1,722.45 a troy ounce, up from a session low of USD1,721.35 and down from a high of USD1,726.95 a troy ounce.
Gold futures were likely to test support at USD1,683.55 a troy ounce, the low of Nov. 6, and resistance at USD1,737.95, Monday's high.
Greece recently passed an austere budget for next year and also pushed through politically unpopular budget cuts and tax hikes as required to tap a EUR31.5 billion tranche of financial aid.
Eurozone finance ministers met earlier to review the details of Greece's progress but have yet to free up the money for Athens, which sent investors snapping up safe-haven dollar positions, a recipe for falling gold prices.
Gold and the dollar normally trade inversely.
Eurozone finance ministers have given Athens two years to meet austerity targets though the country is quickly running out of funding and will need a tranche of aid soon.
Eurozone policymakers are scheduled to meet again to discuss Greece's finances on Nov. 20.
Greece will not default until then as it can roll over debts in the meantime.
While the tranche of aid will end shorter-term solvency issues for Greece, the country and creditors must still agree on ways to lower longer-term debt burdens.
Fears that the U.S. risks falling into an avoidable recession continued to quash appetite for risk, including gold.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession if left unaddressed by Congress.
Lawmakers have expressed confidence that they'll avoid partisan bickering and cut a deal, but until an announcement hits the wire, investors will remain wary.
Even if a compromise steers the country away from recession, a deal could still crimp growth somewhat, which could bruise stocks and leave investors seeking safe harbor in the dollar.
Elsewhere on the Comex, silver for December delivery was down 0.97% and trading at USD32.207 a troy ounce, while copper for December delivery was down 0.48% and trading at USD3.450 a pound.