Commodities: Gold recedes on Greek uncertainty, strong US data

LONDON (ShareCast) – Gold prices continued their decline on Friday on uncertainty surround Greece and upbeat US manufacturing data. Gold futures for April delivery receded 0.2% to $ 1,204.90 an ounce. Meanwhile, Brent futures fell 0.2% to $ 60.08 at the end of Monday’s session, while ICE WTI futures decreased 2.2% to $ 50.75.

CMC Markets analyst Jasper Lawler noted: “US markets had a strong finish after having traded lower during the day thanks to Germany’s rejection of Greece’s bailout plan, missed earnings at Wal-Mart and falling oil prices dragging the shares of energy companies lower.” IG (LSE: IGG.L – news) analyst Chris Beauchamp said: “It’s been a day of drift for commodities, thanks mainly to the Eurogroup meeting.

“Precious metals will command attention should no deal transpire by the time markets open on Sunday, but for now the default position is to sit and await developments.” Eurozone leaders did approve a four-month extension to Greece’s bailout late on Friday, but concerns about a possible Greek exit of the Eurozone were weighing on sentiment ahead of the Eurogroup meeting.

Over on LME, three-month copper futures rose 0.8% to $ 5,724.00 a tonne, following the oil price trend.

Spreadex analyst Connor Campbell said: “There is the sense that until this Greek situation is resolved its gains won’t be much more robust than this.”

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