Gold was slightly lower in the Asian trading hours on Friday – the yellow metal closed above $1,200 for the first time in three weeks yesterday as the markets continued to digest the recent dovish Federal Open Market Committee (FOMC) statement release.
The spot gold price was last at $1,199.3/1,200.1 per ounce, down $1.90 on the previous close. Trade has ranged from $1,199.1 to $1,202.2 so far.
The latest FOMC statement indicated that, while interest rates are likely to increase this year, the pace of further tightening will be gradual.
Gold continues to find support from Greek concerns. As expected, the Eurogroup meeting yesterday did not bring a breakthrough in negotiations between Greece and its creditors.
An extraordinary summit of eurozone heads of state will be held on Monday, June 22, to find agreement ahead of the June 30 deadline when Greece is required to transfer $1.6 billion in repayments due to the IMF.
Today the European Central Bank (ECB) will hold its own emergency meeting to discuss liquidity situation of Greek banks.
In US data overnight, CPI in May was up 0.4 percent, below the forecast 0.5 percent and core CPI at 0.1 percent missing the expected 0.2 percent.
But weekly unemployment claims at 267,000 were better than the predicted 278,000, while the current account in March of -$113 billion bettered consensus of -$116 billion.
The Philly Fed manufacturing index in June was 15.2, nearly double the forecast of 8.1.
Data today includes German PPI and eurozone’s current account.
As for the other precious metals, silver was little changed at $16.13/16.18. Platinum at $1,081/1,086 increased $3 while palladium was unchanged at $717/722.
On the Shanghai Futures Exchange (SHFE) gold for December delivery was unchanged at 242 yuan per gram.
The post Gold drifts lower, all eyes on Greece appeared first on The Bullion Desk.
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