Gold is trading lower after the second bailout for Greece

Gold slumped today, extending the losses recorded in the past session, affected by the upbeat news regarding Greece, where yesterday the European leaders have come to an agreement regarding the financial situation in Greece and the nation was bailed out with 159 billion euros package.

Spot gold is currently trading around $1587.95 per ounce after the opening of $1590.50; the metal recorded the high of $1592.06 and the low $1586.85 per ounce.

The shiny metal reversed to the downside after a wave of relief spread in the market easing the jitters and volatility, after the upbeat news from Brussels summit yesterday, where European leaders have finally perceived dangers and risks associated with the debt-crisis they are facing, and came up with critical decisions regarding Greece and other suffering countries. Eased jitters and concerns have pushed the market up, however, forced the metal to start a downside journey after the debt-concerns softened on the agreed second bailout package for Greece, where the shiny metal lost its appeal as a safe haven.

The European leaders closed the widening gap and agreed on the second bilout for Greece yesterday during the summit, where a package of 159 billions euros was adopted for the Greek Prime Minister, Papandreou who said that the bailout would secure the nation's need until 2020 and will sustain its debt.

The second aid package for Greece was divided in 109 billion euros to be provided by the euro zone and the International Monetary Funds, while an additional 50 billion euros will be the financial institutions contribution to the bailout after the agreement to participate in terms of a series of bond buybacks. The French president, Sarkozy, said that this bailout package should reduce the debt-to-GDP ratio by 24%, from the old ratio of 150%.

All eyes are focused on the Euro zone and Greece after the upbeat news have reduced the level of volatility and the jittery in the market and also softened the pessimism the dominated the market for a long period of time; expectations for the shiny metal is bearish for now as long as rating agencies will not intervene, and consider the bond buybacks as a selective default.

Among other precious metals, silver also fell today to trade now around $38.97 per ounce after the opening of $39.37, while the metal recorded a high of $39.45 and a low of $38.85 per ounce.

However, platinum surged today after the opening of $1783.00 per ounce, recording the high of $1790.00 and the low of $1782.00, and is currently trading around $1788.00 per ounce.