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Gold dips in Asia as investors await views of European leaders on Greece

Published 07/06/2015, 08:58 PM
Updated 07/06/2015, 09:00 PM
Gold dips in Asia as Greece talks awaited

Investing.com - Gold prices dipped in Asia on Tuesday as investors awaited talks in Brussels on the forward for Greece.

Earlier, Greek Prime Minister Alexis Tsipras received hard news from International Monetary Fund Managing Director Christine Lagarde on Monday that policy prohibits lending to countries that have missed payments, although it can offer advice of the staff, an IMF spokesman said.

Lagarde spoke to Tsipras by telephone and did say that technical talks could be held with staff.

"The Managing Director explained the Fund's inability to disburse under its arrears policy, but offered to provide technical assistance where requested by the Greek authorities," the IMF spokesman said.

Greece missed payments to the IMF on June 30.

As well, U.S. President Barack Obama and Treasury Secretary Jack Lew each spoke to key officials in Europe Monday.

Lew told Tsipras and newly-installed Finance Minister Euclid Tsakalotos that it was important to work "toward a constructive outcome that will allow Greece to make difficult but necessary fiscal and structural reforms, return to growth, and achieve debt sustainability within the Eurozone," the Treasury said.

Euro zone leaders and related officials are set to meet in Brussels July 7 to hash out the next steps on Greece.

Ahead, the Reserve Bank of Australia policy meeting and cash rate decision is at 1430 (0430 GMT) with a steady stance seen at a record low 2.0%.

On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.39% to $1,168.60 a troy ounce.

Silver for September delivery fell 0.51% to $15.672 a troy ounce. Copper for September delivery rose 0.08% to $2.535 a pound.

Overnight, gold futures ticked up on Monday amid a relatively flat dollar, as investors digested a resounding No vote in the historic Greek referendum that could further complicate tense, deliberate negotiations with international creditors.

In Athens, officials from the Greek bank association said banks nationwide will remain closed through at least Wednesday as the nation awaits a decision on whether it will receive further liquidity assistance from the European Central Bank. Deposits from ATMs throughout Greece will remain capped at €60 per day, officials added.

It came less than 24 hours after Greek citizens turned down a closely watched referendum, which could have lent support to a cash-for-reforms deal proposed by leaders from the euro zone.

Meanwhile, Germany vice chancellor Sigmar Gabriel indicated that Greece is teetering on insolvency and must present an offer beyond the measures it has proposed in recent weeks if it hopes to reach a deal. Greece's latest proposal could be modeled on the latest offer crafted by European Commission president Jean-Claude Juncker, according to multiple reports.

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