By Paul Ploumis 30 Jun 2015 Last updated at 01:26:13 GMT

EDGWARE (Scrap Monster): Gold investing prices erased an earlier 1.1% spike against the Dollar and gave back a 2.8% jump against the Euro in London on Monday, flat-lining for the day as a whole as world stock markets sank following the weekend's news of capital controls and emergency bank holidays in Greece.

"Greece unilaterally broke off talks," said European Commission president Juncker in a press conference, claiming that "We don't deserve the criticism being levelled at us. I don't, nor does [Eurogroup president] Dijsselbloem."

After Greek prime minister Tsipras called for a snap referendum next weekend to decide "in or out" on the Euro currency, capital controls restricting bank withdrawals and transfers from Greece were imposed Sunday after the European Central Bank halted new emergency lending to the stricken state's commercial lenders.

"Greek people should know the truth," said Juncker. "The door is still open. This is not the end of the process."

"Risk off sentiment hit the market this morning following the news," says a note from Swiss refining and finance group MKS, "sending gold higher on the open."

With the Euro sinking over 1% at the start of Asian FX trading, gold investing prices leapt €30 per ounce to a 4-week high of €1082, only to ease back as the single currency recovered.

Shanghai equities meantime sank 3.5% for the day, extending the last two weeks' losses to more than one-fifth despite a cut to China's key interest rates and easier lending rules for commercial banks in the world's second-largest economy.

Crude oil fell 1.7% as European stock markets lost over 3%, German Bund yields retreated to 1-month lows, and Spanish and Italian government debt fell in price.

Interest-rate futures slashed the forecast odds of the US Federal Reserve making its first hike to Dollar borrowing costs in a decade this September from 45% on Friday to just 25% this morning.

"A dovish Fed and increased threat of Greek default will support gold," reckons a new report from French investment and London bullion bank Societe Generale.

"But weak investing and jewellery demand will limit price upside."

On the contrary, says a note from SocGen's fellow London market maker Barclays Capital, "The lower price environment has been viewed as a buying opportunity in gold, which bodes well," said in a note today.

New data from US regulator the CFTC last week showed speculative traders in Comex gold futures and options raising their bullish bets whilst also cutting their bearish bets as a group for only the 7th time in 25 weeks so far in 2015.

Courtesy: www.bullionvault.com