Gold futures were seeing choppy early-morning trade, switching between modest gains and losses amid the opposing forces of Greece’s protracted flirtations with debt default and a strengthening dollar.
Gold for August delivery recovered its losses in electronic trade to sit at around $1,202.30 U.S. an ounce on Comex — modestly higher from where the metal settled Thursday. Gold looks on track to post a nearly 2% weekly gain, if it finishes at or above $1,202 U.S..
Prices of the precious were being pressured by strength in the U.S. dollar which was broadly higher against other currencies as European markets wrestled with Greece’s inability to settle its debts with a group of international creditors.
Since gold is priced in dollars, strength in the greenback can make the commodity more expensive for buyers in other currencies.
The latest development on Greece centers on rumours that its banks may not be able to open on Monday. Euro-zone leaders are expected to host an emergency summit in an attempt to bridge the gap between Athens and its lenders after fraught Eurogroup negotiations on Thursday ended in a bitter stalemate.
If Greek negotiations collapse, as many fear, this could be a boon for gold, according to Commerzbank analysts.
In other metals, July silver was ticking lower, down three cents, or off 0.2%, at $16.12 U.S. an ounce, on track to record a weekly loss of nearly 1%. July platinum was trading $4.80 higher, up 0.4%, at $1,087.20 U.S., but on track to register a 0.8% weekly loss, while September palladium was nearly flat at $718.65 U.S., on track for a 2.6% weekly loss.
