Gold set for lowest Close in nearly a week on Greek optimism

Gold futures headed lower Tuesday, as expectations Greece could strike a deal with its creditors and avoid default helped positioned prices for their lowest close in nearly a week.

August gold GCQ5, -0.53% fell $6.10, or 0.5 %, to $1,178 an ounce on Comex GCQ5, -0.53% A close around this level would be the lowest since June 17. July silver SIN5, -2.37% also lost 32.2 cents, or 2 %, to $15.82 an ounce.

Eurozone officials were optimistic over prospects for a deal to end the Greek debt standoff after Athens presented fresh proposals ahead of meetings of eurozone leaders Monday. Prospects for a Greek deal are seen robbing gold of haven-inspired buying interest.

“One of the main topics of influence (Greece) could be off the table by Monday,” said Adam Koos, president of Libertas Wealth Management Group.

With that said, however, “Greece has been through this before and they’ll be back again,” he said. “Eurozone officials are putting a Band-Aid on a broken leg, and eventually, maybe toward the end of summer, gold will start to catch a bid as Greece spends through its allowance once again.”

Gold had trimmed losses in the immediate wake of data released early Tuesday showing that U.S. durable-goods orders fell more than expected in May. Weaker data could see the Fed delay delivery of its first interest-rate hike in nearly 10 years.

But the durables data were offset by comments by Federal Reserve Board Gov. Jerome Powell, who said there was a 50-50 chance of a September rate hike, which in turn also helped to boost the dollar DXY, +0.98% and add further pressure to dollar-denominated gold.

In other metals trade, July platinum PLN5, +0.58% rose $4.20, or 0.4 %, to $1,064.80 an ounce. Prices on Monday had settled at their lowest level in about six years, with analysts attributing the drop to strong production from South Africa, whose mining industry continues to recover from a mine workers’ strike last year. September palladium PAU5, -0.06% edged down by 70 cents, or 0.1 %, to $694.75 an ounce.

July copper HGN5, +2.24% rose 5.2 cents, or 2.1 %, to $2.62 a pound.

Source: MarketWatch