NEW YORK (TheStreet) -- There may be too many bears in the woods for gold, according to George Gero, a gold market veteran and vice president and precious metals strategist for RBC Capital Markets.
Gold market bulls were disappointed the metal gained only slightly Monday as the Greek debt crisis continues to unravel and produced no weekend agreement with the European Union.
Gold prices saw tepid safe-haven demand and some short covering Monday. Gold quoted in euros did see much better price gains Monday, reports said. August Comex gold was up $6.50 at $1,179.80 an ounce. September Comex silver was down $0.048 at $15.72 an ounce.
Greece's present arrangement with its International Monetary Fund creditors expires on Tuesday-at which time Greece also needs to make a big debt payment to its EU/IMF creditors.
"Last night, as the news hit, gold was up $10 and as the day unfolded and the dollar became very expensive it was very difficult for traders to continue to support gold, because gold is very expensive in dollar terms," said Gero. "Because of possible currency controls in Greece you have seen a flight to cash and to bonds."