Gold up on Greece instability

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as fears over Greece's slide toward default drove investors to gold as a safe haven.

The most active gold contract for August delivery rose 5.8 U.S. dollars, or 0.49 percent, to settle at 1,179 dollars per ounce.

The Greek government on Monday said that it would not be able to make the June 30 payment deadline for money it owes to the International Monetary Fund (IMF). Greek banks are closed on Monday because of the instability, and capital controls have been issued in the country, with limits on ATM withdrawals. This event was destabilizing to the Eurozone economy, and gave gold some upward momentum.

There is a national referendum scheduled on July 5, in which the people of Greece will decide whether or not to accept the European Union's aid package. It further destabilized the Greek markets, adding support to the precious metal.

A fall in the U.S. dollar also buoyed gold. The U.S. Dollar Index, a measure of the dollar against a basket of major currencies, fell by 1.34 percent to 94.89 as of 18:16 GMT. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for September delivery fell 7.3 cents, or 0.46 percent, to close at 15.695 dollars per ounce. Platinum for October delivery added 1.6 dollars, or 0.15 percent, to close at 1,082.30 dollars per ounce.