MTECHTIPS:-Gold gains in Asia as Greece faces five-day deadline for reform package
Gold prices gained in Asia on Wednesday as a hard deadline was set for Greece to present a credible reform package to enable it to receive loans and open its banking system. Greece has a five-day deadline to submit a detailed package of reforms to international creditors in return for a bailout or risk the “bankruptcy” of both the country and its financial system, European Council President Donald Tusk and Commission President Jean-Claude Juncker warned Tuesday. In a high-stakes atmosphere that followed a meeting of euro zone leaders in Brussels after Greece’s Sunday austerity referendum, Tusk and Juncker did not mince words. “The stark reality is that we have only five days left to find an ultimate agreement,” Tusk said. “Until now I’ve avoided talking about deadlines, but tonight I have to say it loud and clear: the final deadline ends this week.” “If there’s no deal, it will mean all the possible consequences, including the worst-case scenario, where all of us will lose,” Tusk continued. “Failure to find an agreement will lead to the bankruptcy of Greece and the insolvency of its banking system.” On the Comex division of the New York Mercantile Exchange, gold for August delivery rose 0.18% to 1,154.70 a troy ounce. Silver for September delivery jumped 0.75% to $15.082 a troy ounce,while copper for September delivery slumped 0.64% to 2.455 a pound. Overnight, gold futures plummeted to a three-month low amid a stronger dollar, as widespread concerns related to the Greek Debt crisis and the plunging Chinese equities market continued to weigh.