You are here

Gold holds gains as Greece, China risks damp US rate outlook

Friday, July 10, 2015 - 09:58
GOLDSWISSBLOO454.jpg
Gold held an advance from a three-month low on speculation the Federal Reserve may push back interest rates rises amid economic risks from China and Greece.

[SINGAPORE] Gold held an advance from a three-month low on speculation the Federal Reserve may push back interest rates rises amid economic risks from China and Greece.

Bullion for immediate delivery was at US$1,160.02 an ounce at 9.33 am in Singapore from US$1,159.43 on Thursday, according to Bloomberg generic pricing. While the metal rebounded since dropping to US$1,147.36 on Wednesday, the lowest level since March 18, it remains 0.7 per cent lower this week.

Gold fell 2.1 per cent this year on prospects for higher US borrowing costs, which boosted the dollar and hurt the metal's allure. Minutes of the Federal Reserve's June meeting, published Wednesday, indicated officials thought that tighter monetary policy was warranted, despite concern over risks from abroad. Investors will get further clues on the central bank's outlook when chair Janet Yellen speaks on Friday.

"An easing of policy-tightening concerns would be theoretically viewed as gold positive," James Steel, an analyst at HSBC Securities (USA) Inc, wrote in a note. The bank does "not expect a rate hike until December 2015." Greece submitted a proposal seeking a three-year bailout loan of at least 53.5 billion euros (S$79.96 billion) in return for reforms and spending cuts similar to those demanded by creditors. It is set to be discussed at a summit of European leaders on Sunday to determine whether the country will get a new bailout, or be forced to leave the single currency.

Share markets in China rallied on Thursday after measures by policy makers to stem a rout. The country's stock slump had spurred losses in global equities and commodities.

Gold futures for delivery in August were little changed at US$1,158.20 an ounce on the Comex in New York. Silver for immediate delivery was at US$15.4305 an ounce from US$15.412 on Thursday, when prices rose for a second day.

Platinum was at US$1,026.48 an ounce from US$1,024.85 a day earlier, set for a 5.3 per cent loss this week. The metal sank to US$1,010.26 on Wednesday, a six-year low. Palladium rose 0.4 per cent to US$641.35 an ounce after dropping 2.5 percent on Thursday. It's 6.5 per cent lower this week, the most since June 2013.

BLOOMBERG

Powered by GET.comGetCom