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.