Investing.com - Gold prices were little changed on Thursday, as investors continued to monitor developments surrounding Greece's debt crisis and as Chinese stock markets rallied sharply amid fresh efforts by the government to calm the market.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange dipped $1.10, or 0.09%, to trade at $1,162.40 a troy ounce during European morning hours.
A day earlier, gold fell to $1,145.90, a level not seen since March 18, before recovering to end at $1,163.50, up $10.90, or 0.95%. Futures were likely to find support at $1,142.40, the low from March 17, and resistance at $1,168.50, the high from July 7.
Also on the Comex, silver futures for September delivery jumped 16.5 cents, or 1.09%, to trade at $15.32 a troy ounce.
The Greek government is expected to present a credible set of reform proposals by midnight on Thursday, after requesting a new three-year bailout from its euro zone creditors on Wednesday.
Whether European leaders accept Greece's request for more emergency loans at an emergency summit on Sunday will depend on whether Prime Minister Alexis Tsipras makes a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of negotiations.
Failure to reach an agreement by Sunday would increase the likelihood of Greece falling into bankruptcy and leaving the single currency union.
The Greek finance ministry announced on Wednesday that the current bank holiday will be extended to Monday and capital controls will remain in place.
The Greek banking system has been closed since June 28, with ATM withdrawals limited to €60 per day, amid concerns that lenders are close to running out of cash.
European Central Bank President Mario Draghi said earlier that a deal on Greece's debt "will be very difficult", while German Bundesbank chief Jens Weidmann said that the ECB should continue to freeze emergency loans to Greece until Athens can reach a deal with its international creditors.
Uncertainty over Greece has so far failed to spur increased investor demand for gold, often perceived as a safe-haven asset.
Meanwhile, minutes of the Federal Reserve's June policy meeting published Wednesday showed that policy makers need to see more signs of a strengthening U.S. economy before raising interest rates.
The minutes also pointed to concerns over Greece's financial problems, signaling that global market turmoil could derail the Fed's rate hike plans if contagion spreads.
Elsewhere in metals trading, copper for September delivery rose 1.9 cents, or 0.76%, to trade at $2.516 a pound during morning hours in London. On Wednesday, copper tumbled to $2.381, a level not seen since July 2009.
The Shanghai Composite rallied nearly 6% on Thursday as authorities increased scrutiny of short selling and eased rules for insurers to invest in blue-chips stocks in wake of China’s recent stock plunge.
Equity markets in China have lost more than 30% over the past three weeks, roiling global financial markets.
Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation's demand for the industrial metal will decline.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.