Gold holds steady as investors brace for Greece default on debt payments

Gold prices held steady in early Asia on Tuesday as investors braced for volatile trade as the final day of Greece's current debt bailout package arrives with a new deal nowhere in sight and wide expectations of defaulting on payments due.

A last-minute series of phone calls and offers failed to reach a breakthrough on Greece's debt package by early Tuesday in Asia, setting the stage for volatile markets.

Talk swirled about the outcome of a planned July 5 referendum with Greece's Prime Minister Alexis Tsipras hinting Monday he might resign if the Greek people vote in favour of the creditors' proposal.

"If the (Greek) people vote yes, then the referendum outcome will be completely respected but I will not serve it," Tsipras said in a television interview. "I'm not an all weather prime minister. I will respect the verdict and prepare the ground as outlined by the constitution and the parliament."

Earlier in the day on Monday, President Barack Obama spoke to France's President Francois Hollande, urging renewed efforts to reach a deal, and then European Commission President Jean-Claude Juncker reportedly made a refined proposal that was rejected by the Greek government with the current bailout due to expire June 30 and no extension on offer.

Gold futures edge lower, Greece remains in focus

Gold prices edged lower in European morning hours in choppy trade on Friday, as the previous session's upbeat U.S. data continued to support the dollar and as markets continued to focus on Greek debt negotiations.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.12% at $1,170.50.
The August contract ended Thursday's session 0.09% lower at $1,171.80 an ounce.
Futures were likely to find support at $1,168.10, the low from June 24 and resistance at $1,179.70, the high from June 24.
The dollar found support after data on Thursday showed that U.S. personal spending rose by 0.9% in May, above expectations for a gain of 0.7%.
The report also showed personal income rose by 0.5% in May, in line with forecasts and after rising 0.5% in April.
In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 20 increased by 3,000 to 271,000 from the previous week’s total of 268,000. Analysts had expected initial jobless claims to rise by 4,000 to 272,000 last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.08% at 95.44 in early European trading,
Meanwhile, market participants continued to monitor the Greek debt situation after negotiations between Athens and its creditors broke down once again on Thursday.
Time is running out for the Greek government to secure a deal to unlock bailout funds ahead of the looming deadline for a €1.6 billion repayment to the International Monetary Fund on June 30.

Gold inches down extending slump amid strong U.S. data, Greek impasse

Gold futures

inched down on Thursday extending a recent slump, amid strong U.S. consumption data and a lack of progress in Greek Debt negotiations.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.02% to 1,172.70 a troy ounce. The precious metal closed lower for the sixth consecutive session, continuing its trend downward since plunging more than 1.2% on Monday. Gold futures traded in a tight range on the session between 1,171.10 and 1,177.30.
On Thursday morning, the U.S. Department of Commerce said consumer spending surged in May by 0.9%, the highest monthly gain in nearly six years and above expectations for a 0.7% rise. Bolstered by a 0.5% spike in personal income, the surge reflects an increase in consumer spending in auto purchases and retail goods. Consumer spending accounts for approximately two-thirds of economic activity throughout the U.S.

Gold prices gain in Asia as investors await more Greece debt news

Gold gained in early Asia on Thursday as investors braced for the possibility that talks with Greece over its debt bailout would stall or even collapse.

Eurozone finance ministers ended their Wednesday meeting early as no real progress was made between Greece and its creditors ahead of the Eurogroup.

Finland's Finance Minister Alex Stubb, "that is it for tonight."

"The Eurogroup will continue again on Thursday at 13:00 CET," Stubb wrote on his Twitter (NYSE:TWTR) account.

European Commission President Jean-Claude Juncker has called another meeting with Greek Prime Minister Alexis Tsipras on Wednesday evening in Europe. The heads of the creditors, the Economy Commissioners as well as Eurogroup President Jeroen Dijsselbloem are also invited to participate.

The meeting is seen as another effort on behalf of the commission to bridge the gaps between the two sides that revolve around pensions and taxes.

On the Comex division of the New York Mercantile Exchange, gold for August delivery rose 0.14% to $1,174.60 a troy ounce.

Silver for July delivery gained 0.03% to $15.858 an ounce.

Copper for July delivery eased 0.05% to $2.623 a pound.

Overnight, gold futures fell to its lowest level in more than two weeks extending losses from earlier this week amid a relatively flat dollar, stalled progress in Greek debt talks and revised estimates of contractions in the U.S. economy in the first quarter.

While the U.S. Department of Commerce's Bureau of Economic Analysis upgraded its estimate of GDP growth for the first quarter from an initial projection of negative 0.7%, its second revision released on Wednesday still estimated negative growth at an annual rate of 0.2%. The decrease in real GDP in the first quarter primarily reflected negative contributions from exports, nonresidential fixed investment, and state and local government spending, the BEA said in a statement. The downside pressures were partially offset by positive contributions from Price Consumption Expenditures, private inventory investment, and residential fixed investment.

GDP growth is typically slow in the first quarter due to seasonal factors. In the opening quarter of 2014, the U.S. economy experienced even sharper losses as GDP declined by more than 2%. Advanced estimates for second quarter GDP will be released on July, where analysts anticipate growth of 2-3% during the period.

Any optimism for a Greek deal on Wednesday, however, quickly faded amid growing contention between the International Monetary Fund and the cash-strapped nation. A five-page document leaked by the IMF outlined broad proposals for Athens to enact sweeping pension reforms and measures aimed at generating additional revenue from Value-Added Taxes.

Greece is running short on time before a bundled payment of EUR 1.5 billion is due to the IMF on June 30. It is feared Tsipras' nation could leave the euro zone if it defaults on its sovereign debt, triggering potential contagion throughout the area. Gold serves as a safe-haven for investors in periods of severe economic instability.

U.S. oil prices top $61 ahead of API supply data

West Texas Intermediate oil futures edged higher on Tuesday, as traders looked ahead to weekly data on U.S. stockpiles of crude and refined products later in the day.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.8 million barrels in the week ended June 19.

Crude oil for August delivery rose 65 cents, or 1.08%, to trade at $61.03 a barrel during U.S. morning hours after hitting an intraday peak of $61.11.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery tacked on 89 cents, or 1.4%, to trade at $64.23 a barrel.

The spread between the Brent and the WTI crude contracts stood at $3.20 a barrel, compared to $2.96 by close of trade on Monday.

Meanwhile, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid hopes that a deal was within sight.

Euro zone finance ministers failed to reach agreement over Greece’s bailout at an emergency meeting on Monday, but indicated that a final deal could be made later this week.

Greece’s existing bailout is set to expire at the end of this month, when it must also repay €1.6 billion to the IMF. A default by Greece could trigger the country’s exit from the euro zone.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 1.1% to 95.56.

Demand for the greenback strengthened after Federal Reserve Governor Jerome Powell said Tuesday that the conditions needed for the first rate hike could potentially be satisfied "as soon as September."

Powell said was a 50-50 chance of a rate hike at the Fed's September meeting and added that he envisions a second hike in December.

On the data front, the U.S. Commerce Department said new home sales jumped by 2.2% to a seven-year high of 546,000 units last month, compared to expectations for a gain of 1.5% to 525,000.

A separate report showed that U.S. durable goods orders fell more than expected in May, while core orders also missed forecasts.