World Economy

Gold Slips

Gold Slips Gold Slips

Gold slipped almost 1% on Monday as the dollar rose against the euro after eurozone leaders agreed a roadmap to a bailout for Greece, while signals the Federal Reserve was still on track to raise rates this year also weighed on prices, Reuters reported. EU officials said Greek Prime Minister Alexis Tsipras finally accepted a compromise on German-led demands for the sequestration of Greek state assets to be sold off to pay down debt. Spot gold was down 0.7% at $1,155.54 an ounce by 0954 GMT, after posting three straight weekly declines. US gold for August delivery fell 0.3% to 1,154.00 an ounce. Gold, typically viewed as an alternative investment in times of financial and economic uncertainty, had not seen significant retail buying as a result of the Greek crisis, due generally to robust dollar and prospects of higher US interest rates, which would increase the opportunity cost of holding gold. Gold is still driven by the interest rate situation in the US.