Investing.com - Gold prices reversed gains on Monday, after European leaders reached a deal over a third bailout for Greece, easing fears over a Greek exit from the euro zone.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange dipped $3.70, or 0.32%, to trade at $1,154.20 a troy ounce during European 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 slumped 8.3 cents, or 0.54%, to trade at $15.39 a troy ounce.
Market sentiment recovered as marathon overnight negotiations on a bailout deal for Greece on Sunday hammered out an agreement to prevent a financial collapse and an exit from the single currency union. The details of the agreement were to be announced a press conference later in the day.
Greece accepted a series of draconian measures demanded by its creditors in exchange for a third bailout deal.
The Greek parliament must approve a package of reforms on Monday and then pass several pieces of legislation by Wednesday, including on pensions reform and a new sales tax regime, before the euro zone will agree to negotiate a new three-year rescue package.
The euro jumped on the news, hitting highs of 1.1197, before turning modestly lower, while the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.15, up 0.15% 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 slipped 0.8 cents, or 0.3%, to trade at $2.530 a pound during morning hours in London. Prices of the red metal slumped to a six-year low of $2.381 on July 8.
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.