Gold futures fell mildly amid a stronger dollar, as Greece and its international creditors agreed in principal to a preliminary bailout early Monday morning following tense, often acrimonious marathon negotiations.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 2.00 or 0.17% to $1,155.90 a troy ounce. During Monday’s session, gold reached a high of $1,163.80 an ounce, as the two sides moved closer to a deal in overnight trading, before falling back to a session low of 1,150.10, as investors remained cautious of a possible collapse.
Following an emergency 17-hour summit in Brussels, perhaps the longest in the history of the European Union, Greece agreed to a wide range of concessions on austerity measures that could pave the way for a three-year, €86 billion bailout through the European Stability Mechanism (ESM). Under the deal, the Greek parliament has until Wednesday to pass four sweeping laws regarding sales tax increases, pension system overhauls and labor market reforms.
The ratification could trigger a vote by six other EU parliaments later this week. By July 22, the Greek parliament must pass two additional laws in order for talks to proceed. Greece must also open some of its businesses for Sunday trade and privatize its publicly-owned electricity transmission network operator, also known as ADMIE.
“The Greeks have to move first, show that they’re credible, that they mean it and at the end of the week we will take the form of a decision moving forward on the program,” said Netherlands finance minister Jeroen Dijsselbloem, head of the euro group of finance ministers.