US labour market data which were somewhat weaker than expected caused the US dollar to depreciate yesterday, lending support to the gold price. After initially falling to a 3½-month low of $1,157 per troy ounce, it recouped its losses again in the afternoon. The majority of market participants clearly now expect a later start to the series of interest rate hikes by the US Federal Reserve, says Commerzbank.
Nonetheless, gold and silver both risk falling below their multi-month trading corridors. Market participants will now be awaiting the outcome of this weekend's Greek referendum with bated breath. Polls indicate that it will be neck-and-neck, making the outcome anyone's guess. A "No" vote would likely drive up the gold price on Monday.
The U.S. Mint sold 76,000 ounces of gold coins in June, 57% more than last June and the highest sales volume since January, notes Commerzbank. Outside the US, Australia's Perth Mint also reported robust demand for gold coins in June. By contrast, gold ETFs tracked by Bloomberg recorded outflows of 9.8 tons in June, and a further 2.6 tons of gold have already been withdrawn in July. This more than offset the higher coin demand and presumably weighed on the gold price, according to Commerzbank.
