HEFFX Gold Report
Gold steadied above a four-month low on Friday as the dollar tumbled against the euro on signs of progress in Greece’s efforts to secure fresh funding.
Spot gold was unchanged at 1159.65 an ounce by 1436 GMT. Prices touched 1146.75 on Wednesday their lowest level since March 18 when the dollar was boosted by weakness in the euro on Greece and the tumble in Chinese stock markets.
US gold for August delivery was also unchanged at 1159.00 an ounce.
The euro climbed 1.2 percent against the dollar making dollar-denominated assets such as gold cheaper for buyers using other currencies.
“Gold is getting some support from the stronger euro but if we get a deal with Greece on Sunday it should be bearish for gold because it removes any risk” Societe Generale analyst Robin Bhar said.
Physical demand remained tepid this week as prospective investors in China chased bargains in equities after a market rout while those in India delayed purchases.
“We are seeing the chance of a break below 1150 an ounce in coming sessions. That could perhaps help generate some physical demand in Asia” MKS SA head of trading Afshin Nabavi said.
The metal in India was still sold at a discount to the global benchmark.
Chinese stocks rose sharply for a second day on Friday after Beijing moved to stem a rout that pulled down key indexes by around 30 percent from mid-June banning shareholders with large stakes in listed firms from selling.
Also aiding gold the International Monetary Fund trimmed its forecast for global economic growth this year to 3.3 percent from a previous estimate of 3.5 percent citing recent weakness in the United States.
Silver was up 0.4 percent at 15.43 an ounce palladium rose 1.3 percent to 645.47 an ounce and platinum gained 0.2 percent to 1023.24 an ounce slightly rebounding from a 6-1/2 year low near 1000 hit on Wednesday.
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