COM: Gold dips below $1200 as EU debt crisis eases
SINGAPORE (Commodity Online) : Gold prices eased in Asian trade Monday after Greek aid pack approval by EU eased concerns over debt crisis in the region.
Gold for immediate delivery was seen trading at $1195.31 an ounce at 11.30 a.m Singapore time while U.S. June gold futures was at 1200.69 an ounce at the same time.
The precious yellow metal dropped as much as 1.5 percent Monday after the EU and IMF approved aid for Greece, easing concerns over the euro zone's debt crisis that had driven bullion to near-record highs.
European Union finance ministers agreed emergency measures worth 500 billion euros on Monday to prevent Greece's debt crisis causing turmoil in other euro zone countries, EU sources said.
Earlier, the International Monetary Fund unanimously approved a 30 billion euro rescue loan for debt-stricken Greece.
Meanwhile, world's largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD), said its holdings stood at a record high of 1,188.498 tones as of May 7, from 1,185.787 tones in the previous business day.
Spot gold tumbled more than $18 to a low of $1,195.20 an ounce from Friday's high of $1,213.35.
On Friday, gold futures rose to a near record, capping the third straight weekly gain, as Europe’s fiscal crisis spurred demand for the metal as a haven. Silver jumped the most since November.
Gold reached $1,214.90 an ounce on Friday, 1 percent below the Dec. 3 record.
Gold futures for June delivery rose $13.10, or 1.1 percent, to $1,210.40 an ounce on the Comex in New York on Friday. The price has climbed 10 percent this year. The all-time high is $1,227.50
