Monday 6 July 2015

Gold prices gain in Asia on safety as Greece vote 'No' on bailout terms

Gold rose in Asia on Monday as policy makers set the stage to react to any fallout from the Greek vote at the weekend rejected the bailout terms from international creditors.

Gold futures for August delivery on the Comex rose 0.36% at $1,172 a troy ounce as investors sought safety with the future of Greece's membership in the euro zone in doubt after the vote.

Elsewhere in metals trading, silver futures for September delivery gained 0.18% at $15.683 a troy ounce.

Copper for September delivery however plunged 0.78% to $2.597 a pound.

Asian policymakers in China and Japan and elsewhere braced for any fallout from the Greek 'No' vote at the weekend as Greece's Prime Minister, Alexis Tsipras said Sunday he wanted a quick deal with its creditors and to restore banking sector operations to avert a humanitarian crisis.

Tsipras said that the International Monetary Fund report, released Thursday, which said that the Greek debt was not sustainable, was proof that his government was right on the demand its restructuring.

Greece's Finance Minister, Yiannis Varoufakis, said Sunday that the 'No' vote in the referendum was the peoples' response to five years of austerity and added that creditors never had a real intention to cooperate.

"We had two requirements: to put an end to austerity and to restructure the debt," he said. "Unfortunately, the creditors refused any meaningful discussion and from the first moment planned to shut down our banks in order to impose their positions," he said to reporters.

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