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Greece Receives Loan Extension, Precious Metals Down

February 20, 2015 at 20:39 by Vladimir Vyun

Gold fell together with other precious metals today after the eurozone finance ministers reached an accord regarding extension of Greek loan. While the bailout program will not be extended for six months as Greece has asked, the indebted country will have four more months to implement reforms required by the bailout agreement. The news eased fears among investors, reducing demand for safe-haven assets.

There was an additional blow to the risk-aversion sentiment in the form of positive data from the United States. The Markit Flash US Manufacturing Purchasing Managers’ Index rose from 53.9 to 54.3 in February, exceeding expectations. The report said:

Manufacturing companies indicated a robust and accelerated expansion of production volumes during February. The latest increase in output was the most marked since October 2014, with survey respondents noting that improving economic conditions and rising client spending continued to boost production schedules.

It made traders even less willing to buy precious metals.

April futures for gold dipped 0.66 percent to $1,199.60 per troy ounce as of 20:33 GMT on COMEX today. March silver lost 1.14 percent to $16.20 per ounce. Spot prices for platinum went down 0.80 percent to $1,161.88 per ounce, and palladium fell 0.78 percent to $780.95 per troy ounce.

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