Investing.com - Gold prices declined on Monday, after a deal over a third bailout deal for Greece was reached after marathon all-night talks between European leaders.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange dipped $3.40, or 0.29%, to trade at $1,154.50 a troy ounce during U.S. morning hours. Futures were likely to find support at $1,145.90, the low from July 8, and resistance at $1,174.40, the high from July 6.
Also on the Comex, silver futures for September delivery inched down 0.1 cents, or 0.01%, to trade at $15.48 a troy ounce.
European Council President Donald Tusk said early Monday that a program for Greece was "all ready to go", "with serious reforms and financial support".
The Greek parliament must pass new legislation on Monday and Tuesday to implement the measures agreed in Brussels, including on pensions reform and a new sales tax regime. Parliaments in several euro zone countries will also have to approve any new bailout.
Eurogroup President Jeroen Dijsselbloem said talks on bridge financing for Greece will begin immediately, to help cover its debt repayments this summer. He also said that €50 billion of state owned Greek assets would be set aside in a fund to contribute to the recapitalization of Greek banks.
European stock markets rallied on the news, with France’s CAC 40 jumping 2% and Germany’s DAX 30 rising 1.5%.
Meanwhile, the euro was lower after initially spiking on news of a Greek debt deal, as investors turned their attention to prospects for higher U.S. interest rates later this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.65, up 0.7% for the day.
The greenback remained supported after Federal Reserve Chair Janet Yellen said in a speech Friday that the central bank is on track to raise interest rates at some point this year. The comments from Yellen are her most definitive to date on the timing of a 2015 rate hike.
Fed Chair Yellen appears before the House Financial Services Committee on Wednesday. Her testimony will be closely watched for further clues on when U.S. interest rates may start to rise.
Elsewhere in metals trading, copper for September delivery tacked on 1.0 cent, or 0.39%, to trade at $2.547 a pound during morning hours in New York.
Official trade data released Monday showed that China’s copper arrivals in June fell 2.8% from a month earlier to 350,000 metric tons, the lowest level in four months.
The country’s trade surplus narrowed to $46.5 billion last month from $59.5 billion in May, compared to estimates for a surplus of $55.7 billion.
Chinese exports rose 2.8% from a year earlier, beating forecasts for a decline of 0.2%, while imports fell 6.1%, better than expectations for a drop of 15.0%.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
China is scheduled to release data on second-quarter gross domestic product on Wednesday. The report is expected to show the world's second largest economy grew 6.9%, slowing from 7.0% in the preceding quarter.
Beijing has set a growth target of "around 7.0%" in 2015 after the economy grew 7.4% in 2014, the slowest pace in 24 years.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.