Comex gold futures inched up Friday, supported by reports that central banks are prepared to support global markets in case of an adverse outcome to the Greek election and expectations of new monetary stimulus from the U.S. Federal Reserve.
The most-actively traded contract, for August delivery, was recently up $7.20, or 0.4%, at $1,626.80 U.S. per troy ounce on the Comex division of the New York Mercantile Exchange.
Gold prices moved higher along with broader markets as investors mulled reports that global central banks stood ready to flush liquidity into the financial system to calm markets. European Central Bank President Mario Draghi said the bank will continue its "crucial role" of providing liquidity to sound banks against appropriate collateral.
Meanwhile, the Bank of England plans to flood the U.K. bank system with extra cash and disclosed a "funding for lending" scheme, offering banks cheap funding so long as they keep on lending.
Gold prices have been pressured by worries that Greece, following this weekend's elections, could leave the euro-zone in a move that could trigger a global liquidity crunch. While gold is widely considered a store of value, it is less liquid than the dollar and has been losing out to that haven asset in recent weeks.
Gold also caught a boost from hopes that the Fed will disclose accommodation measures at its policy-setting meeting on June 19-20. Gold prices had rallied during the last easy-money efforts, as investors sought to protect their wealth from inflation by buying hard assets.
Manufacturing activity in the New York area slowed sharply in June, barely staying in expansionary territory this month, according to the Federal Reserve Bank of New York's Empire State Manufacturing Survey.
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