Gold edged lower as the European Union currency dropped sharply versus the United States dollar and stock markets recovered as news surfaced that Greece will complete a deal with international creditors to avoid default.
Spot gold plunged 0.7 percent ($1,176.79 per ounce). US gold futures for settlement in August declined $7.50 or $1,176.60.
The yellow metal dropped for the third straight time because of pressure particularly the likelihood of a rate rise in almost 10 years. This bolstered opportunity cost of bearing non-profit gold bullion.
According to an analyst from Standard Chartered, there seems to be consolation in the market which is not good for gold prices in the interim.
Strength of the USD, which benefitted from positive US statistics, put additional pressure on gold.
The shared currency fell and was behind 1.6 percent against its US counterpart for its largest one-day decrease during the last three months.
An analyst with FOREX.com maintained that additional losses are expected for gold although precious metals may be oversold at the present while Greece can still default and abandon the Union. This outcome will without a doubt increase the appeal of safe havens assets.
Demand in physical gold among Asian countries is lethargic as monsoon issues weighed on Indian buying while the more profitable stock markets kept traders away in China.
Silver went down 2.4 percent ($15.72 per ounce) while platinum increased 0.4 percent or $1,061.50. Palladium rose 0.04 percent ($693.75).
Platinum declined to its lowest in over six years at $1,053.75 per ounce.