Gold prices drop sharply in Asia on weak flash China PMI, market turmoil

Gold prices fell hard in Asia on Friday as investors see a slowdown in China manufacturing as ensuring continued easy policy by one of the world's top yellow metal buyers and as continued to assess the scope for a Federal Reserve rate hike in September and geopolitical tension appears eased for now.
The Markit/Caixin survey of China manufacturing showed a decline to 48.2 a 15-month-low, and well below the expected 49.7 and off from June's final of 49.4. Final data is due in August.
The flash reading suggests manufacturing conditions may be deteriorating and will raise questions about the resilience of the economic recovery despite Beijing's confidence for a better second half.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 1.43% at $1,0878.40 a troy ounce.
Silver for September delivery dropped 1.31% to $14.508 a troy ounce.
Copper for September delivery eased 0.39% to $2.367 a pound.
Otherwise, China markets were relatively calm following a report in the UK press that $800 billion has fled the country as a systemic crisis brews.
London's Daily Telegraph cited research reports showing a "frighteningly large" $800 billion has flowed out of China over the past year, as the forces which saw Chinese reserves top out at nearly $4 trillion unwind at a rapid and dangerous pace.
Overnight, gold futures inched up on Thursday amid a weaker dollar, halting a 10-day losing streak – its longest in nearly two decades.
A session earlier, gold futures plunged more than 1% to close under $1,100 for the first time in more than five years. Previously, the precious metal closed lower in every session dating back to July 9. The extended skid tied a 10-day losing streak in 1996 for the longest slide during the period.

Gold extends losing skid to nine, one day after falling to 5-yr low

One day after crashing more than 2.2% to fresh five-year lows, gold futures inched down on Tuesday for its ninth straight loss in spite of a retreating dollar.
On the Comex division of the New York Mercantile Exchange, gold for August delivery traded in a tight range between 1,098.30 and 1,108.60 before closing at 1,106.00, down 0.80 or 0.07% on the session. Gold futures are down approximately 8% since peaking above $1,200 an ounce in late-June.
On Monday, gold plunged more than 5% in a matter of minutes in early morning Asian trade when it fell below $1,120, triggering a fresh batch of sell orders. Over the weekend, the People's Bank of China tightened regulations on internet financing in further efforts to bolster its crashing equities markets. In recent weeks, Chinese investors have lost approximately $3 trillion in the stock market amid the slowest growth in the world's second-largest economy in over a decade.
The stimulus measures came hours after China released data on its gold holdings for the first time since 2009. While Chinese gold holdings surged about 60% to 1,658 metric tons over the six-year span, the figure still pales in comparison to the nation's increasing stockpile in foreign exchange reserves. Chinese gold reserves represent only 1.5% of its forex reserves, dampening optimism that the world's second-largest economy can provide a further boost to the global gold market.
China is the world's largest producer and second-largest consumer of gold behind India. On Tuesday, Au99.95% on the Shanghai Gold Exchange fell mildly by 2.1 yuan to 221.36 a kilogram.

Gold hovers near five-year low, eyes on Shanghai

MANILA (Reuters) - Gold held near its lowest level in more than five years early on Tuesday after tumbling more than 4 percent the session before in an early-Asia rout, pulling bullion below the key $1,100 support. Monday's selloff began shortly after the Shanghai Gold Exchange opened trading when liquidity was thin and investors are eyeing the bourse for any further selling pressure.

Gold inches down amid likely '15 Fed rate hike, optimism of a Greek deal

Gold futures inched down in spite of a weaker dollar, as traders digested strong indications from Janet Yellen that the Federal Reserve will raise interest rates this year and markets throughout the euro zone moved broadly higher amid optimism of a Greek deal. On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 1.00 or 0.09% to 1,158.20 an ounce. During Friday's session gold futures traded in a tight range between $1,156.80 and $1,163.00 an ounce, ending the week down approximately 0.5%. In Athens, Greece prime minister Alexis Tsipras sought support from members of parliament for backing of a €53.5 billion austerity plan through the European Stability Mechanism (ESM). Tsipras' Syriza party submitted the proposal to Greece's troika of creditors from the European Central Bank (ECB), European Commission and International Monetary Fund on Thursday night. "We are confronted with crucial decisions," Tsipras said. "We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, but certainly not given a mandate to take Greece out of the euro zone.We are all in this together.” While addressing parliament on Friday evening, Greece finance minister Euclid Tsakalatos outlined a proposal which includes an ESM-ECB debt swap, significant fiscal and investment reforms and further debt relief as part of the program. On Saturday, the euro group of finance ministers will discuss the request by the Greek authorities for financial assistance from ESM, while the The European Commission, the ECB and IMF will present their assessment of risk to financial stability in the euro area, Greece’s financing needs and the sustainability of its public debt, the euro group said in a statement. If approved, the two sides could approve an agreement on Sunday in an emergency summit in Brussels.

Gold prices dip in early Asia as market weighs prospects for Greece deal

Gold prices dipped in early Asia on Friday as investors looked ahead to Europe where a week of furious dealmaking over terms for Greece's bailout comes to a head this weekend.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.15% to $1,157.50 a troy ounce.
Silver for September delivery rose 0.205 or 1.35% to 15.365 an ounce. Copper for September delivery eased 0.02% to $2.545 a pound.
Overnight, gold futures fell mildly on Thursday amid a stronger dollar, as equities markets in China rallied sharply and top officials in the euro zone continued to prepare for Sunday's critical summit with Greece in Brussels.
In China, the Shanghai Composite Index rebounded from Wednesday's collapse gaining more than 5.75% in its strongest one-day move since March, 2009.
A wide range of regulations from the People's Bank of China aimed at curtailing selling spurred a rally in large-cap stocks, as the Shanghai stock exchange 50 gained more than 6% on the session. Previously, Chinese equities had crashed more than 25% over the last month erasing approximately $3.5 trillion from stocks in its benchmark index.
China is the world's largest producer of gold and the second-largest consumer of the precious metal behind India.
Elsewhere, Greek leaders scrambled to finalize a proposal required to unlock critical aid from its troika of creditors.
On Thursday evening, Greece presented a signed copy of an emergency bailout to its troika of creditors three hours before the expiration of a midnight deadline. Under the new proposal, Greece agreed to a strict package of reforms and spending cuts worth up to €13 billion, according to the Guardian.
In exchange for the adoption of the austerity measures, the cash-strapped nation could receive approximately €50 billion in short-term funding needed to stave off bankruptcy. The proposal reportedly also includes modest debt-relief for the Mediterranean state, ahead of key repayments owed to the European Central Bank and International Monetary Fund over the next several weeks.
European council president Donald Tusk has advocated for the inclusion of debt sustainability as a provision of the agreement.

Rollercoaster day for Asia shares as Shanghai lifted by data, PBOC

Shares in Asia had a roller coaster day with the Shanghai Composite swinging between gains and losses on a mix of upbeat data and support measures.
The Shanghai Composite was in positive territory, up 1.30%, near the break, while the Hang Seng index rose 3.24% and the S&P/ASX 200 eased 0.42% in a volatile morning marked by regional data flows as well as events over Greece.
The Nikkei 225 fell 0.69% after core machinery orders for May rose 0.6%, well above the expected drop of 5%.
Eurogroup President and European Stability Mechanism Chairman Jeroen Dijsselbloem sent a letter to the top euro zone economic officials asking them to assess Greece's request for a stability loan.
In China, June CPI rose 1.4%, above the 1.3% gain seen, while PPI fell 4.8%, more than the drop of 4.5% expected, indicating an easing in deflationary pressure on the consumer figure, but producer prices are at a four-month low and extend the run of negative growth to a record 40 months, highlighting the problems of widespread industrial overcapacity.
In Australia, the June labour force survey showed a gain of 7,300 jobs, well above a fall of 5,000 jobs month-on-month expected after a strong 42,000 rise in May. The unemployment rate held steady at 6.0% but the labor participation rate rose to 64.8% from 64.7%.
The People's Bank of China on Thursday provided liquidity to China Securities Finance Corp via re-lending at its request, state-run Xinhua News Agency reported.
The PBOC will also let the CSFC issue financial bonds, including short-term commercial paper in the interbank market, and pledged to continue to provide liquidity support to CSFC via various channels. The Shanghai Composite index gained 2.35% in morning trade.
Overnight, U.S. stocks were lower after the close on Wednesday, as losses in the Basic Materials, Oil & Gas and Telecoms sectors led shares lower.
At the close in New York, the Dow Jones Industrial Average fell 1.47% to hit a new 3-months low, while the S&P 500 index lost 1.66%, and the NASDAQ Composite index declined 1.75%.

Gold prices gain in Asia on safety as Greece vote 'No' on bailout terms

Gold rose in Asia on Monday as policy makers set the stage to react to any fallout from the Greek vote at the weekend rejected the bailout terms from international creditors.

Gold futures for August delivery on the Comex rose 0.36% at $1,172 a troy ounce as investors sought safety with the future of Greece's membership in the euro zone in doubt after the vote.

Elsewhere in metals trading, silver futures for September delivery gained 0.18% at $15.683 a troy ounce.

Copper for September delivery however plunged 0.78% to $2.597 a pound.

Asian policymakers in China and Japan and elsewhere braced for any fallout from the Greek 'No' vote at the weekend as Greece's Prime Minister, Alexis Tsipras said Sunday he wanted a quick deal with its creditors and to restore banking sector operations to avert a humanitarian crisis.

Tsipras said that the International Monetary Fund report, released Thursday, which said that the Greek debt was not sustainable, was proof that his government was right on the demand its restructuring.

Greece's Finance Minister, Yiannis Varoufakis, said Sunday that the 'No' vote in the referendum was the peoples' response to five years of austerity and added that creditors never had a real intention to cooperate.

"We had two requirements: to put an end to austerity and to restructure the debt," he said. "Unfortunately, the creditors refused any meaningful discussion and from the first moment planned to shut down our banks in order to impose their positions," he said to reporters.

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

Crude oil prices fell in Asia on Wednesday after U.S. industry group data showed a solid build last week, including for refined products.

The American Petroleum Institute said that U.S. crude stocks jumped 1.875 million barrels last week, while distillates rose 263,000 barrels and gasoline supplies gained 334,000 barrels.

Later Wednesday, the U.S.Department of Energy will release its more closely-watched figures.

On the New York Mercantile Exchange, WTI crude for August delivery eased 0.09% to $58.11 a barrel.

News the Greece had formally missed a debt payment to the IF was accompanied by a request for an extension.

The International Monetary Fund issued the following release on Wednesday in Asia regarding Greece's missed June 30 payment to the Fund.

Mr. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), made the following statement today regarding Greece's financial obligations to the IMF due today:

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.