Gold futures declined on euro-debt deal

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Gold futures declined on euro-debt deal
European leaders finally came out with the bailout package for Greece late Thursday. Investors may trace global cues in today's trade and gold could face downward pressure.

Global investors and commodity traders were eagerly waiting for the outcome of the meeting which held in Brussels headed by European leaders.

European leaders announced 109 billion euro ($157 billion) bailout package for Greece, with this debt woes eased out in Greece.

The most traded commodity gold for August delivery on MCX opened at Rs 22,926 per 10 grams and started declining thereafter, it was trading between Rs 22,877 – Rs 22,883 per 10 grams at 11:15 a.m. IST.

Gold's cousin silver opened lower at Rs 58,247 per kg and was trading between the range of Rs 57,500 – Rs 57,950 per kg same time.

Chances are precious metals may fall further during rest of the day.

Some investors also sold the metal on speculation that U.S. lawmakers are close to an accord on increasing the nation's debt limit.

According to some experts, gold might face short-term headwind, but its long-term appeal remains. Trouble in euro zone has just eased little but not yet gone fully and United Nations is still due to come out with its debt-ceiling issue. Investors may continue to drive prices up seeking safety in bullion.

OneIndia Money

Read more about: gold, silver, greece, commodity
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