LONDON—Spot gold is edging lower Tuesday, tracking the euro's fall against the dollar on worries the European Union will fail to agree a debt aid package for Greece at a summit this week in Brussels.
Spot gold was trading at $1,097.82 an ounce, down 0.5% on the day. It was trading in a range between $1,097.80 to $1,106.27 an ounce. The gold market is closely tracking the euro's moves, and trying to anticipate the results of the EU summit Thursday and Friday.
The euro again is testing key support against the dollar at $1.35, dragging gold towards its own support at $1,100 a troy ounce. Analysts said a break below $1.35 would renew selling pressure on gold, which could quickly fall toward $1,090 on long liquidation.
Germany's stance of opposing an aid package for Greece is increasingly at odds with other EU members, raising uncertainty for the stability of the euro. Meanwhile, Greece's finance minister Tuesday said the country had no need of financial assistance but urged the EU to take measures that would ensure stability in the euro zone.
In other metals, spot silver is 0.6% lower at $16.83 an ounce. Spot platinum is down 0.3% at $1,590 an ounce and spot palladium is 0.4% lower at $452.0 an ounce.
