Gold settles at lowest level in a month
Bullion prices ended lower at Comex on Wednesday, 01 July 2015 at Comex. Gold futures on Wednesday logged their lowest settlement in nearly a month, extending losses from a day earlier as an upbeat report on U.S. private-sector hiring and strength in the U.S. dollar and stock market dulled the metal's haven appeal.
Gold for August delivery fell $2.50, or 0.2%, to settle at $1,169.30 an ounce on Comex.
September silver fell less than half a cent to $15.577 an ounce.
A report that Greece's prime minister is prepared to agree to most bailout terms set by creditors helped provide a lift to stocks while dampening haven demand for gold. But a separate report then said creditors had rejected a new proposal for budget cuts and policy overhauls, and Greece will proceed with its Sunday referendum as planned.
U.S. equities climbed Wednesday. Data Showed that private-sector hiring rose to the fastest pace in half a year in June. U.S. manufacturers also grew in June at the fastest rate since the start of 2015, a survey of executives found.
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The U.S. ICE dollar index also rose following the ADP employment report.
As expected, the Greece government did not make a 1.5 billion Euro debt payment Tuesday and is now in default on its loans from the International Monetary Fund and European Union. However, investor risk appetite was on the upswing Wednesday as there were reports Greece and the IMF/EU are again close to an agreement on a debt restructuring and financial aid package that will keep Greece in the EU.
The Greece news overshadowed some downbeat economic data coming out of China Wednesday. China's official manufacturing purchasing managers' index came in at 50.2 in June from the same reading in May. A slight rise in the PMI was expected. A reading above 50.0 suggests expansion in the sector. Last weekend China eased its monetary policy in an effort to stimulate domestic economic growth.
Traders and investors are awaiting Thursday morning's U.S. employment report for June from the Labor Departmentreleased one day early due to the U.S. Independence Day holiday on Friday. The key non-farm payrolls number of the report is expected to come in at up around 230,000.
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