Gold prices seesawed during the Friday US trading period as investors rotated to equities and await furthers development in Greece.
Gold for August delivery on the Comex division of the New York Mercantile Exchange declined $1.30 to settle at $1,157.90 per ounce. Trade ranged from $1,156.40 to $1,163.0.
Equity markets saw major gains today with indexes in Asia, US and Europe. In particular, the Shaghai Composite index was up 4.5 percent to 3,877.80 – the past two trading sessions were the biggest multi-session jump since 2008.
“Global equities ruled the waves today after a choppy week with the Shanghai Composite issuing a stark reminder to the average punters on the street that prices can go down,” Triland Metals said.
“With so many highly leveraged speculators effectively ‘flushed out’ of the market this week there is a feeling that there is room for smart money to emerge and push prices higher,” the broker added.
In Greece, negotiations will continue over the weekend after Prime Minister Alexis Tsipras presented a proposal that accepts many of initial cuts introduced at a June 26 meeting.
Investors seem to believe this latest chapter in the multi-year negotiations process will end in Greece remaining in the eurozone – the euro was last up 0.8 percent to 1.1130 against the dollar.
Shifting to the US, Federal Reserve Chairwoman Janet Yellen predicted the timeframe for the initial interest rate hike, but also provided a hedge regarding the importance on inflation.
“Based on my outlook, I expect that it will be appropriate at some point later this year to take the first step to raise the federal funds rate and thus begin normalising monetary policy,” Yellen said in a speech today in Cleveland.
“But I want to emphasize that the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step,” she added.
While in data, US wholesale inventories month-over-month in May was up 0.8, above forecasts of 0.3 percent. Japanese PPI for June was at -2.4 percent, weaker than estimates of -2.2 percent, with consumer confidence at 41.7, in-line with predictions of 41.9.
Meanwhile in US equities, the Dow Jones industrial average and S&P were each up 1.3 percent.
As for other precious metals, Comex silver for September delivery rose 15.9 cents to $15.520 per ounce. Trade has ranged from $15.340 to $15.635.
Platinum for October delivery increased $8.90 to $1,031.30 per ounce while the most actively traded palladium contract was at $649.85, up $11.85.
(Editing by Tom Jennemann)
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