Gold futures were modestly higher in early Friday trade, getting a lift from weakness in the U.S. dollar, as hope grows that a definitive agreement can be struck by Greece and its international creditors over the weekend.
The euro was up 1.1% against the dollar EURUSD, +1.2955% at $1.1193, compared with $1.1039 in late Thursday trade. The U.S. Dollar Index DXY, -0.52% a measure of the greenback against a basket of rival currencies, was nearly 1.1% lower at 95.5640.
Dollar-denominated gold benefits from a weaker dollar because it makes the yellow metal more attractive to buyers in other currencies.
Gold’s climb came as global stock markets and U.S. stock-index futures were pushing sharply higher, suggesting that the commodity may be influenced more by the weaker dollar than by a push into haven assets.
Investors cheered signs that Greece and its creditors may be nearer to sealing a bailout deal this weekend, after Athens submitted reform proposals that hewed closely to the international lenders’ demands.
Read the latest about the Greek debt crisis here
But gold could come under pressure later, as its early moves higher seemed relatively modest.
Gold futures for August delivery GCQ5, -0.01% were $1.80 higher, or up 0.2%, to $1,161.90 an ounce Friday. Gold settled $4.30 an ounce lower in Thursday trade, to close at $1,159.20 on Comex. Gold is looking at a weekly loss of 0.2% and is off nearly 1% in July.
September silver SIU5, +0.32% tacked on two cents, or 0.2%, at $15.40 an ounce, after closing 20 cents higher Thursday, or up 1.3%, to finish at $15.36. Silver is still on pace for a loss of 1.1% for the week.
In other metals, high-grade copper HGU5, -0.90% lost a penny, or 0.6%, at $2.54 a pound, after closing up nearly 2% Thursday to $2.55 a pound. Copper is on track for a 3.5% weekly fall. Industrial commodities have come under pressure, as concerns about the economy of China, one of the biggest importers of metals like copper, have intensified.
October platinum PLV5, +0.55% climbed $9.70, or almost 1%, to $1,032 an ounce. On Thursday, platinum settled down $13.40 an ounce, or 1.3% lower, at $1,022. The precious metal is eyeing a weekly loss of nearly 5%.
September palladium tacked on $9.05, or 1.42%, to $647.05 an ounce, after losing $15.50 on Thursday to settle at $638 an ounce. Palladium is looking at a weekly loss of 6.9%.
