NEW YORK (TheStreet ) -- Gold prices were slipping Thursday as Greek debt fears hurt the euro and boosted the dollar.
Gold for June delivery was falling $13.50 to $1,135.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Thursday has traded as high as $1,149.80 and as low as $1,133.10. The U.S. dollar index was adding 0.54% to $81.66 while the euro was slipping 0.81% against the dollar. The spot gold price today was falling over $11, according to Kitco's gold index.
The IMF and European Union aren't moving fast enough for investors. Lack of details surrounding Greece's bailout package is weighing on the euro and supporting the U.S. dollar. Greece's budget deficit grew in 2009 lifting its debt as a portion of GDP to $115.10 percent. Ireland's ballooning budget deficit also spooked the markets and Fitch said Japan might lose its credit rating as government debt continues to rise. A stronger U.S. dollar typically means weaker gold prices as the metal becomes more expensive to buy in other currencies. The gold price can often buck the U.S. dollar as it did Wednesday, but today the inverse correlation is tempering gold's upside.
"Gold continues to find good dip buying interest and is proving relatively resilient to a stronger dollar," says James Moore, analyst at thebulliondesk.com in his daily metals report. Although rising global debt issues and low interest rates, especially in the U.S., are supporting gold prices, Moore anticipates some short-term consolidation. "[Gold] requires a close above $1,162 to confirm a break to the upside." Investors will be looking to President Obama as he speaks on Wall Street Thursday to plug financial reform. Strong regulations could curb investors' risk appetite for riskier commodities and drag on gold prices for the short term.
The price of silver was down 27 cents to $17.80 while copper was losing 6 cents to $3.46.
