Gold prices saw a lack of investor fortitude throughout the trading session as Greek headlines provided little relief for despondent observers.
Gold for August delivery on the Comex division of the New York Mercantile Exchange fell $1.10 or to close at $1,171.80 per ounce. Trade was stuck in a tight-range, fluctuating between $1,170.50 and $1,177.30.
Investors remain on the sidelines as Greek discussions lasted until late into the night, with no resolution being reached with creditors. Discussion is slated to continue today between the Mediterranean country and EU finance ministers ahead of June’s 1.6 billion-euro repayment to the International Monetary Fund.
“Gold hovered in a two to three dollar range for most of the day and continues to lack inspiration on either side of the market,” Triland Metals said. “Whilst the sluggish activity is threatening lower prices it still feels that the market is now basing for its next big move.”
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 data today, US weekly unemployment claims were in-line with forecasts at 271,000, the 18 straight month of unemployment under 300,000. Core PCE price index month-over-month in May also met expectations of a 0.1 percent increase, while personal spending month-over-month in May was up 0.9 percent, above forecasts of 0.7 percent.
Additionally, May personal income month-over-month was slightly below estimates at 0.5 percent, with consensus pegging a rise of 0.6 percent.
In US equities, the Dow Jones industrial average was down 0.1 percent, while the S&P was up 0.1 percent. The euro was unchanged at $1.1205 against the dollar.
As for the other precious metals, Comex silver for July delivery was down 1.8 cents at $15.835 per ounce. Trade has ranged from $15.730 to $15.910.
Platinum futures for July delivery on the Nymex rose $10.10 at $1,084.20 per ounce, while the most-actively traded palladium contract was at $679.50, down $16.20.
(Editing by Tom Jennemann)
The post Gold prices drift aimlessly as investors await Greek resolution appeared first on The Bullion Desk.
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