The gold market was quiet in the US on Thursday morning – traders have grown weary of speculating what might be the next Greek headline.
Gold for August delivery on the Comex division of the New York Mercantile Exchange was last up 10 cents at $1,173.00 per ounce. Trade has ranged narrowly from $1,171.00 to $1,177.30.
Despite intensive talks last night, there remains no resolution to the Greek debt crisis. There will be further discussions today between the country and EU finance ministers ahead of the deadline for June’s 1.6-billion-euro repayment to the IMF – the fund has already said that it would not consider any extensions.
“We suspect that despite the current drama surrounding the Greek talks, an agreement will be ultimately be reached, but given the political brinkmanship, there is always the chance that things could go wrong, with one side throwing in the towel and walking away,” INTL FCStone’s Edward Meir said.
“Once again, we think the sidelines are the best option at this stage, as it is impossible to trade based on political negotiations that are fraught with so much uncertainty and have a time-clock ticking in the background. We saw the extent of the disconnect on Wednesday when gold floundered on what should have been constructive news,” he added.
Elsewhere, in better news, the Indian monsoons have started, dropping enormous volumes of rain that should make farmers happy, Dennis Gartman, editor of the Gartman Letter, said.
“For the gold market this is great news for farmers are the bulwark of the gold market in India which remains either the first or second most important buyer of gold at any one time, vying with China for that honour. Happy Indian farmers are historically buyers of gold. They have been so for ages; they will be so again,” Gartman said.
In today’s data, US unemployment claims, the core CE price index, personal spending, personal income and the flash services PMI are set for release.
In wider markets, the dollar was unchanged at 1.1208 against the euro, while Germany’s DAX and France’s CAC-40 were up 0.26 percent and 0.17 percent respectively.
As for the other precious metals, Comex silver for July delivery was down 6.3 cents at $15.790 per ounce. Trade has ranged from $15.730 to $15.910.
Platinum futures for July delivery on the Nymex were down 20 cents at $1,073.90 per ounce, while the most actively traded palladium contract was at $684.00, down $11.70.
(Editing by Mark Shaw)
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