Gold Drops to $1,199.50 on News of Greek Reform

The spot gold price slipped 0.4 percent, to $1,196.45 per ounce, on news that the European Union has accepted Greece’s proposed reform plans in ongoing discussions regarding the country’s debt, according to Reuters.

Meanwhile, US gold futures for April delivery dipped $4.50 an ounce, to $1,199.30.

Prior to the reform’s acceptance, Commerzbank (ETR:CBK) analyst Daniel Briesemann remarked, “[h]ope that there will be an agreement, and that the list of reforms that Greece presented overnight is sufficient to meet the demand of the Eurogroup, is (pressuring) gold.” Investors responded to the to the eventual agreement with a move out of safe-haven commodities.