GOLD MARKET prices for wholesale Good Delivery bars held flat against the Dollar Tuesday morning in London, dropping against the Euro as Greece was reported to nearing a new bail-out deal with its Eurozone partners.
European stock markets fell and New York index futures pointed lower.
After
Monday's mixed economic data, and with last month's official US non-farm payrolls data due this coming Friday, the Dollar slipped to a 1-week low on the FX market ahead of tomorrow's European Central Bank policy decision.
Wednesday will also bring the private-sector ADP Payroll Services estimate of US employment for May.
"The gold market is in the doldrums," said one London market maker's trading desk in a note this morning, pointing to the recent $1180-1200 range.
"Unable to have a life of its own, the market is awaiting direction from the Greek tragedy, ECB rate decision and US Non-Farm Payrolls."
Wholesale market prices in London today moved $5 either side of last week's finish at $1190 per ounce.
The Euro, however, knocked gold prices down to 2-week lows for investors in Germany, France, Italy, Spain and the 15 smaller single currency economies, as
new data said consumer prices rose 0.3% per year on average for the union's 330 million citizens – the first positive reading since November.
Excluding fuel and food, so-called 'core' CPI rose 0.9% annually – its fastest pace in more than a year, but still less than half the European Central Bank's 2.0% target.
'Sources' meantime claimed to various news agencies that last night's urgent meeting in Berlin, called by German chancellor Angela Merkel for Eurozone partners to discuss the 5-year old Greek debt crisis, had
resulted in a broad consensus on what to demand from Athens.
Friday brings the next deadline for Greece to make another repayment to the Eurozone's fellow bail-out lenders, the International Monetary Fund in Washington – this time of €300 million.
For his part, "We have
submitted a realistic plan for Greece to exit the crisis," said Greek prime minister Tsipras today, adding that the reforms he's promised are "concessions that will be difficult" for his country.
Demand to buy gold at the market benchmark LBMA Gold Price auction held strong Tuesday morning, with the clearing price found at $1188.75 per ounce.
Yet demand still slipped by one-third from Monday afternoon's 6-week record, which only found enough supply to balance it from other market participants at a price just 10 cents shy of $1200 per ounce.
"Gold will be influenced by more economic releases this week," says London bullion market-maker HSBC's commodities analysts, calling Friday's US jobs data "the most important."
But either way, says HSBC, "we believe current prices should be attractive to emerging market buyers."
Silver prices also held dead-flat in Dollar terms in the London market Tuesday morning, trading unchanged for the week so far at $16.75 per ounce.
