Gold largely unchanged ahead of decision on Greece

A Greek exit from the Eurozone has become somewhat less likely after the Greek government last night submitted the required list of reforms, which largely tally with the Eurogroup's proposals at the end of June. Gold is trading virtually unchanged at a good $1,160 per troy ounce as the week draws to a close, though in euro terms it has fallen to €1,045 per troy ounce. 

At the same time, Athens has requested an aid programme worth €53.5 billion for the next three years. The relevant institutions now have to assess the reform proposals, with an EU summit at the weekend then deciding on whether to begin negotiations of a third aid programme. 

"If the Greek proposals were to be rejected, short-term turmoil on the financial markets and a rising gold price would be likely at the beginning of the week", says Commerzbank.