MTECHTIPS:-Gold continues slide, as Greece clings to hopes for last-minute deal
Gold futures fell mildly extending losses from the previous session amid a stronger dollar, as emergency talks in the Greek Debt Crisis dragged into the final hours before a second bailout from international creditors expired on Tuesday evening. On the Comex division of the New York Mercantile Exchange, gold for August delivery dipped 5.50 or 0.51% to 1,173.00 a troy ounce to touch down to near three-week lows. Gold futures wavered between 1,168.40 and 1,180.00, ending the month down more than 1.5%. The precious metal ended June closing lower on eight of its last 10 sessions after reaching 1,205 on June 18 when it spiked more than 2.1% Gold likely gained support at 1,162.10, the low from June 5 and was met with resistance at 1,200.80, the high from June 22 Gold futures pared earlier losses in U.S. afternoon trading, ahead of a conference call between Greece and its international creditors hours before the expiration of a €240 billion bailout. If Greece and its troika of creditors from the European Commission, European Central Bank and International Monetary Fund, are unable to reach a deal the cash-strapped nation will lose access to the final €7.2 billion tranche of the stimulus package. Separately, Greece said it would not make a €1.5 billion payment to the IMF stemming from a 2010 bailout, before the end of Tuesday’s deadline. Greece joins Zimbabwe, Sudan, Somalia and Liberia as the only nations with overdue repayments to the IMF over the last decade. While Greece will become the first advanced economy in the 71-year history of the IMF to be placed in arrears, its failure to meet the obligation on time will not yet result in full default on its sovereign debt. If Greece remains in arrears only for a short period of time, there is a possibility the IMF will show leniency to the Mediterranean state once it repays its debts. Any nation in arrears with the IMF, which occurs when a debt or liability is overdue, is unable to receive access to the organization’s resources until the debts are settled.