Gold futures threatened to post a sixth straight decline Friday as several reports of a possible bailout extension for Greece weighed on the yellow metal.
Futures for gold were switching between modest gains and losses in electronic trading as investors attempted to parse a series of unconfirmed reports suggesting that Greece’s international creditors are considering granting an extension of the country’s bailout program.
Greece has been given a Monday deadline to reach an economic-reform agreement with its creditors ahead of key repayment due next week.
Gold futures August delivery on were down $2.20, at $1,169 U.S. an ounce. On Thursday. the metal settled at $1,171.80 U.S., which marked a fifth consecutive slide for gold and its lowest settlement since June 5. Gold is on pace to post a 2.7% loss for the week.
September silver was down 12 cents, or 0.8%, at $15.69 U.S. an ounce, on track for a 2.6% weekly decline.
The back-and-forth talks in Greece have provided support for gold buyers because investors view the metal as a haven investment in times of uncertainty.
On the data front Friday, gold traders were watching for a fresh reading on U.S. consumer sentiment, which rang in at 96.1 Friday morning. Economists had expected a reading of 94.6.
Prices also are being influenced by the dollar, which was showing some signs of strength amid the debt talks playing out in Europe. The ICE U.S. Dollar Index, a measure of the dollar’s strength against a basket of six main currencies, was up about 0.2% in early trade at 95.3770. A strong dollar can weigh on dollar-denominated gold.
In other metals, September copper was up a penny, or 0.6%, at $2.64 U.S. a pound, leaving the industrial metal little changed on the week.
