Gold Closes Down as Investors Move to Stocks on Greece Deal

By Ira Iosebashvili 

        Gold reversed gains Tuesday, as investors poured their money into stocks after a deal emerged between Greece and its creditors.
        Gold for August delivery, the most actively traded contract, closed down 0.2% at $1,153.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices hit $1,1591.10 earlier in the session.
        U.S. stocks rose Tuesday, extending a rally that propelled the S&P 500 to its biggest three-day advance of the year, fueled by optimism that a deal between Greece and its creditors could be reached. That deal was secured Monday and gave Greece a fighting chance of staying in the eurozone. Investors are waiting to see whether the Greek government will be able to pass the tough austerity measures necessary to receive the bailout. The S&P 500 was recently up 0.5% at 11.33.
        Abating fears of a financial crisis in Europe weighed on gold, an asset some investors buy in times of heightened political or economic uncertainty.
        "There is very little enthusiasm for owning gold right now," said Ira Epstein, a broker with the Linn Group.
        In addition to rising equity markets, investors are wary of Wednesday's scheduled congressional testimony from Federal Reserve Chairwoman Janet Yellen, Mr. Epstein said. Any signs that the Fed may be leaning toward raising interest rates in coming months are likely to be negative for gold, which pays its holders nothing and struggles to compete with yield-bearing investments when borrowing costs rise.
        Corrie Driebusch contributed to this article.
        Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
        (END) Dow Jones Newswires

        July 14, 2015 15:39 ET (19:39 GMT)

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