Gold Drops Further

Gold spot price was down 0.6 percent on Tuesday, hitting $1,178.10 an ounce as the euro dropped against the dollar and stock markets rallied in hopes that Greece would reach a deal with it creditors. The dip follows the metal’s biggest one-day loss in nearly a month on Monday.

“It’s always hard to know exactly how much gold prices are being supported by events in Greece, but we definitely saw yesterday that when you take away some of that immediate risk, the risk premium comes out of the market pretty quickly,” Natixis analyst Nic Brown told Reuters.

Meanwhile, gold futures for August delivery dropped $6.30 to hit $1,177.80.