Gold prices were little changed Monday, as investors weighed turmoil in Greece against the mounting certainty that the Federal Reserve would raise U.S. interest rates this year. Gold for August delivery, the most actively traded contract, was broadly flat at $1,163 a troy ounce on the Comex division of the New York Mercantile Exchange. Greeks on Sunday overwhelmingly voted against their international creditors’ conditions for further bailout aid, in a result that could deepen the rift between Greece and the rest of Europe and push the country closer to bankruptcy and an exit from the eurozone. Ordinarily, that would be a boost for gold, which some investors buy during times of economic or political uncertainty believing it will hold its value better than other assets. Prices for the precious metal, however, are being weighed down by expectations that the Fed will tighten monetary policy for the first time in a decade before the year is up. Higher rates in the U.S. would likely be bad news for gold, which struggles to compete with yield-bearing investments when borrowing costs rise. “Given the continued robust results for the U.S. economy, gold has come under pressure from the impending rate (increase), with Greece’s situation not yet severe enough for the broader global economy to warrant safe-haven demand and higher prices,� analysts at Barclays wrote in a note to investors. In other markets, platinum and palladium both fell sharply on worries about global growth, as the crisis in the eurozone continued and China’s stock markets slid despite the government’s pledge to support both share prices and the wider economy. The two metals are used mainly as components in automotive-exhaust filters, and investors worry that the turmoil in Europe and China could reduce automobile demand.

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