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.