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1st LD Writethru: Gold lower on Greece optimism, strong U.S. dollar

Xinhua, June 4, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the situation in Greece improved and better-than-expected U.S. data was released.

The most active gold contract for August delivery fell 9.5 U.S. dollars, or 0.80 percent, to settle at 1,184.90 dollars per ounce.

Gold was put under pressure as reports indicated that the European Central Bank (ECB) and Greece were nearing closer to a deal, and ECB President Mario Draghi indicated that he wants Greece to remain in the Eurozone. This removed the need for gold as a safe haven, putting pressure on the precious metal.

A report released on Wednesday by U.S.-based Automated Data Processing showed better-than-expected job numbers, putting additional pressure on gold. The report showed private payrolls increasing by 201,000 in May, which is on the higher end of expectations.

The job numbers also increased expectations for the possibility of an increase of the U.S. interest rate. Analysts originally believed that interest rates could rise as early as June, but due to worse-than-expected job data in March, now they believe that interest rates will rise in the fall. The next Fed meeting is scheduled for June 15, when investors expect additional news on the timing of a rate increase.

Silver for July delivery dropped 31.9 cents, or 1.90 percent, to close at 16.48 dollars per ounce. Platinum for July delivery fell 8.7 dollars, or 0.78 percent, to close at 1,104.10 dollars per ounce. Endite