Gold dropped for the fifth consecutive session as market investors waited for the outcome of Athens’ talks with creditors while concerns on the yellow metal’s long-term outlook.
Assumptions that the US Fed is hiking interest rates after 10 years boosted opportunity cost of retaining non-profit bullion and pressured the commodity in 2015.
Spot gold declined 0.2 percent ($1,172.95) per ounce with very minimal change from the preceding session. On the other hand, gold futures for delivery in August delivery went down to $1.10 or $1,171.80. Spot prices touched a two-week trough of $1,171.02.
Gold ranged between $1,160 and $1,230 going back to the middle of March and struggled to break higher notwithstanding the apparent increase of tensions in Greece.
Market analysts from COMMERZ Bank were expecting gold to trade higher even as Greek issues have not been settled. They believe this is being restrained by the current withdrawal of tentative financial investors. International equity markets also edged lower due to protracted apprehensions related to this issue in the Euro Zone.
Government officials of Greece have not reached a deal with international creditors paving the way for an eleventh-hour effort over the weekend to forestall a possible default.
Meanwhile, silver decreased 0.4 percent at $15.86 per ounce.
FOREX.com technical analysts are looking at more losses for silver and gold metals although these can be oversold in the interim.
Spot platinum edged higher 0.8 percent at $1,079.25 for one ounce while spot palladium depreciated 2.3 percent at $677.25 per ounce.
Palladium plunged to the lowest since July of 2013 at $668.25 per ounce earlier after breaking through the key chart support during the previous week. Prices have gone down more than 14 percent in 2015 affected by the assessment that supply of this white metal is abundant.