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Sunday, July 22, 2012

Gold prices for monday july 23 2012

Gold prices for monday july 23 2012 ; Gold prices fell in Asian trading on Monday on fears Greece may miss debt targets and risk losing access to bailout funding, which sent investors running to the dollar, which trades inversely from the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.15% and trading at USD1,580.45 a troy ounce, up from a session low of USD1,578.45 and down from a high of USD1,581.65 a troy ounce early during the session.

Gold futures were likely to test support at USD1,567.35 a troy ounce, the low from July 18, and resistance at USD1,586.65, the high from July 20.

Representatives from the European Commission, the European Central Bank and the International Monetary Fund are due to arrive in Greece to discuss the country's steps to narrow its debt-to-GDP target to 120% by 2020.

Fears have arisen the country is already on track to miss that target and risks seeing the flow of bailout money come to a halt, which could precipitate its exit from the currency zone.

German Vice Chancellor Philipp Roesler reiterated over the weekend Greece must adhere to austerity measures in exchange for bailout money.

Der Spiegel magazine reported that the International Monetary Fund may be unwilling to participate in further bailout payments over Greece's inability to meet certain debt-reduction targets, citing unnamed sources.

A halt in the flow of bailout money for Greece could result in default and exit from the currency group, which could rattle the broader European economy, sending investors snapping up dollar-denominated U.S. positions.

Meanwhile in Spain, Treasury Minister Cristobal Montoro said last week the country's recession will extend into next year, with gross domestic product falling 0.5% in 2013 instead of expanding 0.2% as originally forecast, which further pressured oil downwards.

Yields on the Spanish 10-year government note soared above the 7% threshold deemed unsustainable by the markets on fears Spain will need sovereign rescue funding.

Eurozone ministers recently signed off on terms to give Spain EUR100 billion in bailout money to bolster its banks as well as regional governments, though investors fear the country itself will need a sovereign rescue, further fueling dollar demand.

Elsewhere on the Comex, silver for September delivery was down 0.37% and trading at USD27.200 a troy ounce, while copper for September delivery was down 0.19% and trading at USD3.436 a pound.

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