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PRECIOUS-Gold gets safe-haven boost after Greeks reject bailout terms

Published 06/07/2015, 10:48 am
PRECIOUS-Gold gets safe-haven boost after Greeks reject bailout terms

SINGAPORE, July 6 (Reuters) - Safe-haven bids pushed up gold prices on Monday after Greeks rejected terms of a bailout package, bringing more uncertainty over Athens' financial situation and its future in the euro zone.

FUNDAMENTALS

* Spot gold XAU= rose 0.3 percent to $1,170.61 an ounce by 0044 GMT, after earlier jumping as much as 0.6 percent.

* U.S. gold GCcv1 climbed nearly 1 percent in its biggest daily gain in about two weeks to $1,174.40 before paring some gains.

* In a referendum on Sunday, Greeks overwhelmingly rejected conditions of a rescue package from creditors. Official figures showed 61 percent of Greeks had rejected a deal that would have imposed more austerity measures on an already ravaged economy.

* The vote leaves Greece in uncharted waters: risking a banking collapse that could force it out of the euro. Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days. That might force the government to issue another currency to pay pensions and wages. ID:nL8N0ZL017

* Gold, typically seen as an alternative investment during times of financial and economic uncertainties, rallied as the euro slumped and U.S. equity futures fell on risk-averse sentiment in the market. Other safe havens such as the yen also rallied. MKTS/GLOB

* While early price actions have been choppy, dealers emphasised that markets were orderly with no signs of financial strain and expectations were high that the European Central Bank would step in early with a pledge of extra liquidity. The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.

* In other news from the gold industry, the Reserve Bank of India and the finance ministry are in talks to scrap bulk import licences for a gold-silver alloy used by domestic refiners, months after relaxing curbs on gold imports, officials with direct knowledge of the talks said. ID:nL3N0ZJ2QQ

* Gold prices in major consumer India were quoted at deep discounts to the global benchmark this week on tepid demand and adequate levels of inventory, dealers said. ID:nL3N0ZJ2OV

* For the top stories on metals and other news, click TOP/MTL or GOL/

DATA/EVENTS (GMT)

0600 Germany Industrial Orders for May

0830 Euro zone Sentix Index

1345 US Markit Comp Svcs PMI Final for June

1400 US ISM Non-Manufacturing PMI for June

PRICES AT 0044 GMT Metal

Last

Change Pct chg

Spot gold

1170.61

3.17

0.27 Spot silver

15.66

-0.01

-0.06 Spot platinum

1070.74

-9.11

-0.84 Spot palladium

677.72

-1.93

-0.28 Comex gold

1170

6.5

0.56 Comex silver

15.63

0.068

0.44 Euro

1.1021

DXY

96.435

COMEX gold and silver contracts show the most active months

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