Gold, Silver Waver on Greek Bailout

The Street, Alix Steel

Gold and silver prices were trying to find their footing Friday as the European Union and International Monetary Fund reached a preliminary bailout deal with Greece.

Gold for August delivery was shedding $2.70 to $1,517.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,526.50 and as low as $1,516.20 while the spot gold price was down $3.50, according to Kitco's gold index.

Silver prices were down $0.14 to $34.86 an ounce while the U.S. dollar index was rising 0.29% at $75.41 and the euro was slightly lower.

Gold prices tumbled 2% on Thursday and silver tanked 4.7% on a broad commodity selloff as the U.S. dollar surged and investors rushed into the currency as a safe place to put their cash. Gold started to stem its losses in after-hours trading after Reuters reported that Greece had reached a deal with the EU and IMF over its proposed austerity measures.

According to reports, at the end of the first day of a two-day meeting, finance ministers from the European Central Bank, EU and IMF were close to approving another sizable bailout for Greece that would help the country stay afloat until the end of 2014. Greece has to jam through steep austerity measures in its own parliament before the deal can be finalized.

Gold and silver prices were stemming losses but were still under pressure from a stronger dollar. Both metals are at key technical support levels, which if broken, could signal a further selloff.