Gold futures edge topped with the lowest levels of the session on Thursday following a report showed the US economy during the first quarter shrank less than estimated, with support from a greater gain in consumer spending, and supporting case for an interest rate hike in the United States this year.
Gold futures for August delivery dropped on the Comex, hit an Intraday low of $1,171.20 a troy ounce, before recovering to trade at $1,171.80.
The gross domestic product fell an annual rate of 0.2%, revised from a decline of 0.7 percent, government data showed Wednesday. News Household Consumption grew at a rate of 2.1%, compared to the estimate of 1.8%. Following the report by, gold fell as much as 0.7% to $ 1168.10 an ounce, a minimum of two weeks.
The metal has fallen this week since probabilities increase that the Federal Reserve will increase its benchmark interest rate after gains in the US economy.
Meanwhile, nervous investors watched developments in debt negotiations in Greece before the deadline looming for Greece to pay € 1.6 billion to the International Monetary Fund on June 30. If Greece fails the payment risks going into default, which could cause the departure of the euro area.
The talks failed on Wednesday after Greece’s creditors rejected some of his latest reform proposals and displayed the government by counter proposals for an agreement to unblock the rescue funds.
It is expected to resume discussions in Brussels on Thursday morning, before a meeting of the Eurogroup of finance ministers of the eurozone scheduled later in the day.
Amid taking positive cues from global markets, at MCX, gold for delivery in October month moved up by Rs 78, or 0.29% to Rs 26,842 per ten grams.
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