1st LD Writethru: Gold down on Greek deal

Gold futures on the COMEX division of the New York Mercantile Exchange went down Monday as the Greek government and European leaders reached an agreement over Greece's debt crisis.

The most active gold contract for August delivery fell 2.5 U.S. dollars, or 0.22 percent, to settle at 1,155.40 dollars per ounce.

Gold was put under pressure Monday as Eurozone leaders announced that there is a much lower risk that Greece will leave the Eurozone, a move which could destabilize world markets. The deal reached promises Greece 86 billion euros over three years if certain conditions are met. This drove investors away from the precious metal's appeal as a safe haven.

The U.S. dollar also put pressure on gold as the U.S. Dollar Index rose by 0.86 percent to 96.82. The index is a measure of the dollar against a basket of major currencies. 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.

The precious metal suffered additional pressure from U.S. Federal Reserve Chairwoman Janet Yellen's comments Friday saying that the U.S. was on track for an interest rate increase. Many analysts believe the first interest rate increase will come in September.

Silver for September delivery fell 2.4 cents, or 0.15 percent, to close at 15.457 dollars per ounce. Platinum for October delivery added 3.7 dollars, or 0.36 percent, to close at 1,036 dollars per ounce. Endite