The gold price recovered from a near-one-week low on Monday afternoon following the latest breakdown in Greek negotiations.
Spot gold was last at $1,188.40/1,189.20 per ounce, up $8 on Friday’s close – it earlier hit its lowest in nearly a week for $1,172.80 and touched session highs of $1,190.30.
Silver followed gold higher, touching highs of $16.29 per ounce – its highest in more than a week – before settling at $16.19/16.24, up 28 cents.
Investors turned friendlier to gold as a safe haven while global stock markets wobbled. The Dow was last down 0.63 percent, the S&P 500 down 0.56 percent and the Nasdaq 0.63 percent.
European stock markets all closed in negative territory – the Euro Stoxx ended 1.85 percent lower, the Dax 1.89 percent and the Cac 40 1.75 percent.
Despite another meeting in Brussels on Sunday, a deal on Greece has not been reached. Talks between the country and its creditors broke up after less than an hour, once again raising concerns of Athens being unable to repay 1.6 billion euros owed to the International Monetary Fund by the end of this month.
European Central Bank president Mario Draghi added further pressure, suggesting that the ECB has done all it can to get a deal done. He told the European parliament: “While all actors have to go the extra mile, the ball lies firmly with the Greek government.”
The forthcoming eurogroup meeting on June 18 is now being proposed as the next opportunity for negotiations, though this latest setback puts the country one step closer to a default that may seal an exit from the bloc.
Platinum also struggled, striking a fresh six-year low around the New York open at $1,077. The metal was last at $1,089/1,094 per ounce, down $1. Palladium was up $2 at $736/741.
The dollar pared all earlier gain to 1.1254 against the euro, having hit session highs of 1.1186. Forecast-missing industrial data from the US weighed.
Industrial production for May fell 0.2 percent, missing a forecast 0.4-percent increase. Capacity utilisation for the same month was as anticipated at 78.3 percent. June’s Empire State manufacturing index was -2.0 – it had been seen at 5.8 – but the NAHB housing index for June was better than expected at 59.
Still, upbeat economic data last week underlined expectations that the Fed is on track to raise rates for the first time since 2006, possibly as soon as September.
Earlier, the EU April trade balance showed a surplus of 24.3 billion euros against a forecast 20.3 billion euros.
(Editing by Mark Shaw)
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