Gold prices failed to reverse today even after the release of poor economic data in the US, mounting concern in China and an uncertain outcome for Greece.
Gold for August delivery on the Comex division of the New York Mercantile Exchange fell $5.80 to close at $1,163.50 per ounce. Earlier the price touched $1,155.80, the lowest price since March 18.
The precious metal has long been seen as a safe haven for investors during instable periods, but a malaise has captured the market as poor economic indicators in China hasn’t registered a blip.
After growth has slowed to less than seven percent, market participants have become transfixed on the exact state of the Chinese economy. Without a clear picture, the Shanghai Composite index has seen double digit swings – the index was last down 3.5 percent to 3,912.8.
“Whilst the news that Greece can’t pay is five years old, China’s shaky financial picture is more current and concerning,” Triland Metals said. “China (rather than Greece) has been the backbone of many an investment case and as such its ability to open up transparently to the global market is very much in the spotlight – so far things don’t seem to be going too well.”
Much has been written about Greece ahead of Sunday’s referendum, but market participants are in a holding pattern until ballet boxes are counted.
In the June US unemployment report, 223,000 jobs were created as the unemployment rate ticked lower to 5.3 percent from 5.5. percent in May. As first blush, the data seems encouraging until factoring in the forecast of 231,000 jobs and wages remaining unchanged at $24.75 per hour for the annual American worker.
Additionally, unemployment claims came in at 281,000, above predictions of 270,000, while the labor participation rate fell to the lowest level since 1977.
In US equities, the Dow Jones industrial average and S&P were down 0.3 percent and 0.2 percent respectively, while the dollar was 0.3 percent weaker at $1.1087 against the euro.
As for other precious metals, Comex silver for September delivery was little changed at $15.580 per ounce. Trade has ranged from $15.450 to $15.755.
Platinum for October delivery declined $3.70 to $1,084.10 per ounce, while the most actively traded palladium contract was at $693.35, down $7.85.
The post Gold fails to recoup losses, global headlines fail to attract investment appeared first on The Bullion Desk.
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