MTECHTIPS:- Gold futures edge lower despite Greece default fears
Gold prices declined for the second consecutive day on Tuesday, amid indications Greece will default on a €1.6 billion loan repayment to the International Monetary Fund later in the day. Gold futures for August delivery on the Comex division of the New York Mercantile Exchange shed $4.20, or 0.36%, to trade at $1,174.80 a troy ounce during European morning hours after hitting a session low of $1,173.70. Futures were likely to find support at $1,167.10, the low from June 26, and resistance at $1,187.60, the high from June 29. Greece’s bailout program was due to expire on Tuesday and without a rescue package in place Athens would almost certainly fall into arrears on a loan repayment due to the IMF. A default by Greece would add to fears over the country’s solvency and fuel doubts over the condition of Greek banks and the collateral they use for European Central Bank loans. Greece shut down its banking system on Monday, with lenders ordered to stay closed for six days, following a decision by the ECB not to extend a lifeline of emergency funding. Greece broke off negotiations with creditors on Saturday and in a surprise move Prime Minister Alexis Tsipras called for a snap referendum to be held on July 5 on whether to accept the terms proposed by lenders for extending the country’s bailout. European finance ministers refused a request from the Greek government to extend the bailout program until after the referendum. A yes vote will mean that Greeks are willing accept the latest reforms offered by creditors to Athens, while a rejection will likely lead to Greece’s exit from the single currency union. The euro was down 0.65% to 1.1162, falling back towards the one-month lows of 1.0953 struck on Monday after the crisis in Greece escalated.