Gold Ends Higher On Weak Dollar, Greece Concerns

(RTTNews) - Gold futures snapped a four-day loss to end higher on Thursday, as the dollar trended lower against a basket major currencies, coupled with the financial uncertainties in Greece and some soft data showing initial claims for unemployment benefits in the U.S. rose more than expected last week.

Investors also weighed the sharp a sell-off in China equity market, as the Shanghai Composite Index plummeted 6.5 percent. Analysts see the weakness as a reaction to announcements by several brokers concerning tightening requirements on margin financing ahead of an IPO influx next week.

The ongoing uncertainty over the financial situation in Greece also contributed in highlighting the safe haven status of the precious metal. Some mixed comments in the embattled nation's negotiations with international creditors have left investors apprehensive and confused if a deal would materialize.

While Greek Prime Minister Alexi Tsipras told reporters his government is close to an agreement to secure funding from its lenders, European Commission Vice President Valdis Dombrovskis stressed the two sides still have a way to go. The outcome of a meeting of G7 finance ministers in Dresden today and tomorrow could shed more light on how Greece's international creditors seek to end the impasse.

In some soft economic data from the U.S., a Labor Department report showed an uptick in initial jobless claims in the week ended May 23, after reporting a modest increase in first-time claims for U.S. unemployment benefits in the previous week.

Gold for June delivery, added $2.50 or 0.2 percent to settle at $1,188.10 an ounce, on the Comex division of the New York Mercantile Exchange on Thursday.

Gold for June delivery scaled an intraday high of $1,192.00 and a low of $1,179.60 an ounce.

Gold for August delivery, the most actively traded contract, gained $2.30 or 0.2 percent to settle at $1,188.80 an ounce, on the Comex division of the New York Mercantile Exchange on Thursday.

Gold for August delivery scaled an intraday high of $1,192.80 and a low of $1,180.20 an ounce.

On Wednesday, gold futures ended lower at $1,185.60 an ounce, down $1.30 or 0.1 percent, on a strong dollar amid expectations that the Federal Reserve will raise interest rates in either July or September.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 715.86 tons on Thursday, from its previous close of 715.26 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 97.04 on Thursday, down from its previous close of 97.30 on Wednesday in late North American trade. The dollar scaled a high of 97.63 intraday and a low of 96.96.

The euro trended higher against the dollar at $1.0936 on Thursday, as compared to its previous close of $1.0905 in North American trade late Wednesday. The euro scaled a high of $1.0953 intraday and a low of $1.0870.

On the economic front, a Labor Department report on Thursday showed another uptick in initial jobless claims in the week ended May 23, after reporting a modest increase in first-time claims for U.S. unemployment benefits in the previous week. Initial jobless claims edged up to 282,000, an increase of 7,000 from the previous week's revised level of 275,000. Economists expected jobless claims to dip to 270,000 from the 274,000 originally reported for the previous week.

A report from the National Association of Realtors on Thursday showed pending home sales in the U.S. increased by much more than expected in the month of April, with sales jumping to their highest level in nearly nine years. NAR said its pending home sales index surged 3.4 percent to 112.4 in April from a slightly upwardly revised 108.7 in March. Economists expected the index to increase by about 0.8 percent.

Eurozone economic confidence remained unchanged at its second highest level in nearly four years in May despite the ongoing Greek crisis, survey results from the European Commission showed Thursday. The economic sentiment index held steady at 103.8 in May, while it was forecast to fall to 103.5. This was the second highest score since July 2011. The April figure was revised up from 103.7.

Germany's import prices continued to fall in April but at a slower than expected pace, data from Destatis revealed Thursday. Import prices fell 0.6 percent year-on-year in April, slower than the expected decrease of 0.7 percent and 1.4 percent decline seen in March.

The U.K. economy grew at a slower pace as initially estimated in the first quarter, second estimates published by the Office for National Statistics showed Thursday. Gross domestic product expanded 0.3 percent in the first quarter, which was weaker than the 0.6 percent seen a quarter ago. This was the slowest growth since the fourth quarter of 2012.