Spot gold prices have fallen Friday, moving in tandem with a weaker euro, after the EU rejected the proposed Greek bailout deal. The continuing Greek uncertainty has seen risk assets correct lower so far Friday, with spot gold currently trading just above session lows at $1717.93, down $11.47. Thursday’s session saw prices yet again fail around the $1750 level, with prices retreating back sharply from $1752.10. Prices started to fall away again today in the run up to the European equity cash opening, as gold extended its decline to post an intra-day low of $1715.42. Traders report physical demand was subdued during Asian trading hours, despite COMEX reducing its margins on the precious metal for the first time since June 2011. The CME Group announced late Thursday that it intended to lower trading margins on a range of commodities contracts, including gold, silver and platinum, effective from the close of business on Monday. Spot gold has mainly been tracking EUR/USD so far Friday, with the FX pair currently trading $1.3244, near its session low of $1.3239.
EasyForexNews Research Team