Gold edged up slightly in the Asian trading hours on Wednesday after Greece missed a loan payment to the International Monetary Fund (IMF).
The spot gold price was last at $1,174.2/1,175.0 per ounce, up $0.7 on Tuesday’s close. Trade has ranged from $1,172.9 to $1,175.2 so far. In yesterday’s session gold hit its lowest in three weeks at $1,167.00.
As expected, Greece has failed to pay their 1.6 billion euros due to the IMF overnight. The Greek Prime Minister Alexis Tsipras made a request for a two-year bailout plan, which was rejected by the country’s creditors after an exceptional Eurogroup conference call last night. The Eurogroup plans to hold another conference call this afternoon to discuss the plan.
Still, latest developments in Greece don’t seem to be impacting gold in any meaningful way, UBS noted.
“There is an element of headline fatigue – in a sense, the threshold for bad news is higher and it will probably take a lot more to trigger a significant wave of gold safe haven buying,” it said.
“Unless there is a rapid deterioration in the situation in Greece in the coming days and weeks, it’s difficult to see gold having a more notable reaction.”
In US data overnight, the S&P/CS Composite-20 HPI rose 4.9 percent, just below forecasts of 5.3 percent, as was the Chicago PMI at 49.4. But the CB consumer confidence figure came in much better than expected at 101.4.
Today is another busy day for data that includes PMI data releases from the eurozone and the US.
Already out, China’s HSBC final manufacturing PMI for June at 49.4 was below expectations of 49.6 but above the 49.2 recorded in May. The official manufacturing PMI stood at 50.2 in June, unchanged from the previous month’s reading, while the non-manufacturing index for June rose to 53.8 from May’s 53.2.
The main data event of the week is Thursday’s US unemployment report – the country is expected to have created 231,000 jobs this month, down from 271,000 in May.
As for the other precious metals, silver was little changed at $15.69/15.74. Platinum at $1,083/1,088 was up $7 and palladium at $685/690 increased $14.
On the Shanghai Futures Exchange (SHFE) gold for December delivery was one yuan lower at 237 yuan per gram.
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