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Gold futures fall on dollar strength, Greek political progress

Published 05/11/2012, 07:47 AM
Updated 05/11/2012, 07:49 AM
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Investing.com - Gold futures were lower in European trade on Friday, as Greek political progress and a stronger greenback dampened demand for the precious metal

On the Comex division of the New York Mercantile Exchange, Gold futures for June delivery traded at USD1582.55 a troy ounce falling 0.81%.

It earlier traded at a session low USD1573.75 a troy ounce. Gold was likely to find support at USD1573.75 and resistance at USD1642.95.

Launching the negative gold sentiment, Antonis Samaras, leader of Greece’s New Democracy Party, reported that the four rival parties have accepted terms of no exit from the euro region..

On Wednesday, Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government, pushing the debt-stricken country closer to its second election in a few weeks.

In other news, JP Morgan Chase & Co reported a USD2 billion trading loss lifting the greenback as investors sought the safety of the U.S. dollar thus depressing gold prices.

The Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.05% to trade at USD80.32.

Elsewhere on the Comex, Silver for July delivery fell 1.87% to trade at USD28.633 a troy ounce while Copper for July delivery fell 1.37% to trade at USD3.640 a pound.



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