In the early U.S. trade, gold prices were near unchanged levels and after slipping to a two-week low overnight.
Although the gold market currently sees little demand from the Greek debt matter, this could shift if the situation with Athens and its debt burden worsens, says Kitco News.
Although, a stable U.S. dollar index is allowing the metal market bulls to take a breather, overall the stronger dollar is a main bearish weight both for the metals and the raw commodity sectors.
August Comex gold was last down $0.90 at $1,186.90 an ounce. July Comex silver was last down $0.091 at $16.655 an ounce.
The U.S. dollar index steady to slightly
higher Wednesday morning, after hitting a four-week peak overnight.
The dollar remains in the market place spotlight.
Most of the raw
commodity sector and many financial markets are being held hostage by
the daily fluctuations of the U.S. dollar index. Recently, the technical posture
of the index has become more upbeat, which suggests the index
will at least challenge its early-springtime highs, if not push above
them, says Kitco News.
The firmer dollar also suggests crude oil prices have put in a near-term top, and that other raw commodity markets, including the precious metals, grains and softs, will weaken in the coming weeks, or longer.
Greece is still under markets' close scrutiny. Athens and its lenders are meeting in Brussels
later Wednesday and the rest of the week to hammer out a deal.
Beginning Thursday, the G7 nations will meet in Germany to likely discuss the Greece matter, as well as other world economic and financial issues.
While the gold market is currently seeing very
little safe-haven demand from the Greece debt matter, that could
change in a hurry if the situation with Greece and its debt burden gets worse.
Later in the trading day, markets will await data from the U.S. which include MBA mortgage applications survey, the weekly Johnson Redbook and Goldman Sachs retail sales reports.