Spot gold prices are trading in negative territory Monday amid a stronger showing from the USD as Asian markets start the week in a risk-off tone. The sour tone seen so far has developed throughout the session as concerns for Spain’s banking sector continue to cast a shadow over markets, along with the report that appeared in Sunday’s edition of the German weekly Der Spiegel, saying that the International Monetary Fund (IMF) had signalled that it will not contribute to further financial aid for Greece, thus raising a greater risk of insolvency in September. Gold prices have moved lower in tandem with other risk assets this morning, with the precious metal continuing to not attract any haven flows so far. A stronger US dollar has put some moderate pressure on prices so far, with spot gold currently holding at session lows of $1577.68. Spot gold is currently trading $1579 a troy ounce, down $5.53 from the NY close.
EasyForexNews Research Team