Gold Price Resumes Drop As US Dollar Rebounds

New York (July 7)  Gold dropped for a second straight session on Tuesday, as the rebound in the dollar dented the metal’s appeal as an alternative investment.

The yellow metal fell from a high of $1170.41 an ounce to trade at $1167.26, while the session’s low was recorded at $1166.19.

Gold, so far, has failed to take advantage of the Greek crisis as a safe haven asset, as investors still prefer to hold equities and dollars.

Investors will wait to the see the outcome of a eurozone summit on Tuesday, where Greece is predicted to deliver a proposal to be discussed in summit.

The dollar rose to a high of 97.13 while currently hovering around 97.03, according to the dollar index that tracks the green currency’s movements against a basket of six currencies.

Among other precious metals, platinum inched down to $1058.05 an ounce from a high of $1062.35, palladium dropped to $677.75 from the session’s opening at $679.09, and silver retreated to $15.65.