Mcx Gold Tips : The bullion was in reverse gear on Monday as a Greek debt deal put to rest fears over the country’s exit from the euro, bolstering global stock markets and eroding safe haven buying in Gold.
Europe concurred to bail out the debt ridden Mediterranean nation after Greece agreed to ramp up reforms demanded by creditors, winning new European bailout aid worth 86 billion euro, helping the cash-strapped nation to remain a part of the single currency union.
Prime Minister Alexis Tsipras took a u-turn on his stand on austerity measures, submitting to creditors’ demands for streamlining value added taxes, broadening the tax base to boost revenue and limiting pension costs.
The strength of the dollar also cut the demand for Gold as an alternative asset. Stronger dollar makes Gold more expensive for those holding other currencies, thus dimming need.
Meanwhile, traders also weighed Friday’s comments from Fed Chair Janet Yellen who signaled that rate tightening may begin at some point this year, curbing the lure for Gold as a store of value.
Gold may extend a drop today as traders stay on the sidelines ahead of Tuesday’s US retail sales data and Yellen speech tomorrow where she may offer cues over when the world’s top central bank plans to raise interest rates for the first time since 2006.
At the MCX, Gold futures for August 2015 contract closed at Rs 26,024 per 10 gram, down by 0.13 per cent after opening at Rs 26,115, against the last closing price of Rs 26,058. It touched the intra-day low of Rs 25,937 till the closing