Gold Slumps on Likelihood of Greek Debt Deal

23-Jun (Wall Street Journal) — Gold prices fell Tuesday, as investors sold the precious metal amid signs that Greece is nearing a deal with its creditors.

Gold for August delivery, the most actively traded contract, was recently down 0.6% at $1,177.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver for July was down 1.9% at $15.84 a troy ounce after touching a near-two-month low in early trade.

Greece’s creditors were scrutinizing the country’s fiscal promises on Tuesday ahead of a crucial meeting of eurozone finance ministers on Wednesday that could determine whether the country receives last-minute bailout financing before the end of June. The news prompted those who had piled into gold in recent days to sell the safe-haven metal, as the crisis appears to be nearing its end. Some investors buy gold in times of economic and political uncertainty, believing that it will hold up better than other assets in frothy markets.

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