Gold Holds Drop as Greek Deal Shifts Focus to Fed’s Rate Timing

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Gold held a drop after Greece reached a deal with creditors that could pave the way to a new bailout, damping demand for the metal as a haven asset and shifting investors’ focus to the probable timing of a U.S. interest-rate increase.

Bullion for immediate delivery was at $1,156.88 an ounce at 7:35 a.m. in Singapore from $1,157.98 a day earlier, according to Bloomberg generic pricing. The metal declined as much as 1.1 percent on Monday to $1,151.27, the lowest price since July 8, and ended 0.5 percent lower to snap three days of gains.

Gold dropped 2.3 percent this year as the Federal Reserve signaled it planned to boost rates. Fed Chair Janet Yellen maintained her call on Friday for an increase this year, and the rate-setting Federal Open Market Committee will gather at the end of this month to assess the economic recovery. While equities rallied on Monday as the Greek deal was announced, the plan may yet come unstuck as the terms require approval from Greece’s parliament this week.

Higher rates curb the appeal of bullion, which doesn’t pay interest or give returns like assets such as bonds. The Bloomberg Dollar Spot Index was little changed on Tuesday after rising 0.6 percent on Monday. An appreciating dollar tends to restrict gold’s gains.

Futures for delivery in August were little changed at $1,156.40 an ounce from $1,155.50 on the Comex in New York on Monday, when prices lost 0.5 percent. Silver for immediate delivery was 0.2 percent lower at $15.4831 an ounce.

Platinum dropped 0.3 percent to $1,031.25 an ounce, while palladium lost 0.4 percent to $658 an ounce.

Source : Bloomberg

Gold Drop a Third Day on Greece Bailout Deal, Fed Rate Outlook

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Gold fell for a third straight session after Greece secured a deal paving the way to a new bailout and as investors weighed the timing of a U.S. interest-rate increase.

Gold futures for delivery in August fell 0.2 percent to settle at $1,155.40 an ounce at 2:04 p.m. on the Comex in New York.

The Bloomberg Dollar Spot Index, a gauge of the greenback’s strength against 10 major currencies, climbed as much as 0.7 percent, reducing the allure of bullion as an alternative asset.

Holdings in exchange-traded products backed by gold slipped for a third session on Friday, declining 1.3 metric tons to 1,585.3 tons, near the lowest since 2009.

Silver futures for September delivery fell 0.2 percent to $15.457 an ounce, the first drop in four sessions.

Platinum futures for October delivery added 0.4 percent $1,036 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery climbed 1.3 percent to $658.95 an ounce.

Source: Bloomberg

Japan Shares Rise Third Day as Yen Falls on Greece Bailout Deal

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Japanese stocks rose a third day as the yen weakened to an almost two-week low amid optimism over Greece bailout. Insurers led gains on the Topix index.

The Topix climbed 1.5 percent to 1,637.02 as of 9:01 a.m. in Tokyo after jumping 1.9 percent on Monday for its biggest advance this year. The Nikkei 225 Stock Average added 1.3 percent to 20,347.96. The yen slid 0.1 percent to 123.59 per dollar after falling 0.5 percent yesterday. Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for up to 86 billion euros ($95 billion) of aid he needs to keep his country in the euro area.

Futures on the Standard & Poor 500 Index were little changed after the measure rose 1.1 percent on Monday to cap its steepest three-day rally this year.

The Bank of Japan begins a two-day policy meeting Tuesday, with two of 35 analysts surveyed by Bloomberg expecting an expansion of stimulus.

Source : Bloomberg

U.S. Stocks Rally After Greece Reaches Agreement With Creditors

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U.S. stocks rose, with the Standard & Poor’s 500 Index posting its best three-day rally this year, after Greece reached an agreement with its creditors.

The S&P 500 added 1.1 percent to 2,099.52 at 4 p.m. in New York, closing near its average price during the past 50 days after the gauge earlier surged above its 100-day moving average for the first time this month.

Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for up to 86 billion euros ($95 billion) of aid he needs to keep his country in the euro area. The Greek parliament has until Wednesday to pass into law key creditor demands including streamlining value-added taxes, broadening the tax base to increase revenue and curbing pension costs.

Source : Bloomberg

Portugal, Italy Lead Biggest European Stock Rebound Since 2011

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European stocks extended their biggest rally since 2011, with benchmark gauges of Portugal and Italy surging more than 10 percent in four days, as Greece and its creditors reached an agreement paving the way for a new bailout.

The Stoxx Europe 600 Index rose 2 percent to 396.46 at the close of trading in London, taking its four-day increase to 6.4 percent. Portugal’s PSI 20 Index advanced 1.8 percent, and Italy’s FTSE MIB Index climbed 1 percent. Spain’s IBEX 35 Index added 1.7 percent, sending its four-day jump to 8.5 percent.

A U.S.-listed exchange-traded fund tracking Greek equities fell 3.4 percent after earlier gaining as much as 5.3 percent in New York. American depositary receipts of National Bank of Greece SA dropped 2.5 percent, reversing a 12 percent jump.

Source : Bloomberg