NEW YORK (TheStreet) -- On Tuesday, Greece indicated an intention to make a 300 million euro payment to the International Monetary Fund on Friday. That's assuming it can set up a deal with its lenders even if aid is not obtained in time, Reuters reported. As a result, the euro moved higher and the dollar weakened, which sent the price of gold higher.
Eric Zuccarelli, an independent metals trader on the Nymex trading floor, in an interview with TheStreet said that gold trading has been more of a technical trade. And gold will continue to jockey around the $1,200 level as the situation in Greece plays out and the timing of an interest rate hike in the U.S. becomes clearer, he said.Must Read: 5 Stocks Warren Buffett Is Selling
Commodities are priced in U.S. dollars, so as the greenback moves higher, oil and gold prices generally move lower, and the inverse applies.
Near term, Zuccarelli said the key levels to watch in gold are $1,220 an ounce on the upside and $1,165 to $1,170 on the downside.
With copper futures, there's been a lot of liquidation and more shorts as the market got ahead of itself at $2.90 a pound, he said.
Zuccarelli explained that the technical picture looks poor and open interest in copper contracts is declining.
Copper's next stop on the downside could be at $2.65, said Zuccarelli, adding that this could be the floor. Relative to the other metals, copper tends to trade more independently from foreign currency and interest rate moves.