Gold declines ahead of Greek debt talks

Investing.com - Gold prices edged lower on Monday, as investors turned their attention to a key meeting between European leaders and Greece later in the day.

All 28 members of the European Union are scheduled to be present at an emergency summit on Monday, in what could be Greece's final opportunity to avoid a default.

Ahead of the summit, Greek Prime Minister Alexis Tsipras was to hold talks with representatives from the International Monetary Fund, the European Central Bank and the eurogroup of finance ministers.

Athens submitted a new package of economic reforms on Sunday night, indicating that it is prepared to make concessions to break a deadlock to unlock €7.2 billion in funds.

Greece’s existing bailout is set to expire at the end of this month, when it must also repay €1.6 billion to the IMF. A default by Greece could trigger the country’s exit from the euro zone.

The euro pushed higher against the dollar early Monday, while the dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% to 94.12.

Meanwhile, gold futures for August delivery on the Comex division of the New York Mercantile Exchange shed $5.90, or 0.49%, to trade at $1,196.00 a troy ounce during European morning hours.

Futures were likely to find support at $1,171.90, the low from June 15, and resistance at $1,208.90, the high from May 26.

Gold rallied almost 2% last week after the Federal Reserve's rate statement tempered expectations for a rate hike later this year.

The Fed lowered both its U.S. growth forecast and its interest-rate projections, prompting investors to push back expectations on the timing of an initial rate hike.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

Also on the Comex, silver futures for July delivery dipped 1.1 cents, or 0.07%, to trade at $16.09 a troy ounce, while copper for July delivery rose 0.3 cents, or 0.12%, to trade at $2.572 a pound.