Gold and Precious Metals: Gold Settles Near $1,496 as Safe-Haven Bids Ease - CNBC

Gold and Precious Metals: Gold Settles Near $1,496 as Safe-Haven Bids Ease - CNBC

http://www.cnbc.com/id/43542859

Published: Monday, 27 Jun 2011 | 5:27 PM ET

By: Reuters

Gold fell for a third session on Monday, weighed down by economic optimism as investors bet debt-laden Greece would take action needed to avoid a default, pressuring safe-haven demand.

Anthony Bradshaw | Getty Images

Gold's response to Greece's debt crisis has so far been erratic. Last week, the metal notched its worst performance in eight weeks as fears of economic slowdown pressured bullion prices along with other risk markets such as equities. In the past, gold tended to benefit as a safe haven in times of economic uncertainty.

"A possible solution to the Greece debt situation ... may dampen the need for safe-haven buying as the euro rebounded and currencies are less volatile," said George Gero, vice president of RBC Capital Markets. "Investors are buying stocks as they were more appealing."

Spot gold [XAU= 1498.86 2.66 (+0.18%) ] was last near $1,495 an ounce.

U.S. gold futures [GCCV1 1499.70 3.30 (+0.22%) ] for August delivery settled down $4.50 an ounce at $1,496.40, after trading between $1,490.80 and $1,506.10.

Silver [XAG= 33.70 0.16 (+0.48%) ] was down 2 percent at $33.58 an ounce, reflecting losses in other industrial metals.

http://www.cnbc.com/id/43542859

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