July 6, 2015 / 12:49 AM / 2 years ago

PRECIOUS-Gold gets safe-haven boost after Greeks reject bailout terms

SINGAPORE, July 6 (Reuters) - Safe-haven bids pushed up gold
prices on Monday after Greeks rejected terms of a bailout
package, bringing more uncertainty over Athens' financial
situation and its future in the euro zone.
    
    FUNDAMENTALS
    * Spot gold rose 0.3 percent to $1,170.61 an ounce by
0044 GMT, after earlier jumping as much as 0.6 percent.
    * U.S. gold climbed nearly 1 percent in its biggest
daily gain in about two weeks to $1,174.40 before paring some
gains.    
    * In a referendum on Sunday, Greeks overwhelmingly rejected
conditions of a rescue package from creditors. Official figures
showed 61 percent of Greeks had rejected a deal that would have
imposed more austerity measures on an already ravaged economy.
    * The vote leaves Greece in uncharted waters: risking a
banking collapse that could force it out of the euro. Without
more emergency funding from the European Central Bank, Greece's
banks could run out of cash within days. That might force the
government to issue another currency to pay pensions and wages.
 
    * Gold, typically seen as an alternative investment during
times of financial and economic uncertainties, rallied as the
euro slumped and U.S. equity futures fell on risk-averse
sentiment in the market. Other safe havens such as the yen also
rallied. 
    * While early price actions have been choppy, dealers
emphasised that markets were orderly with no signs of financial
strain and expectations were high that the European Central Bank
would step in early with a pledge of extra liquidity. The
Japanese government said it was ready to respond as needed in
markets and was in close touch with other nations.
    * In other news from the gold industry, the Reserve Bank of
India and the finance ministry are in talks to scrap bulk import
licences for a gold-silver alloy used by domestic refiners,
months after relaxing curbs on gold imports, officials with
direct knowledge of the talks said. 
    * Gold prices in major consumer India were quoted at deep
discounts to the global benchmark this week on tepid demand and
adequate levels of inventory, dealers said. 
    * For the top stories on metals and other news, click
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    DATA/EVENTS (GMT)
    0600 Germany Industrial Orders for May 
    0830 Euro zone Sentix Index 
    1345 US Markit Comp Svcs PMI Final for June 
    1400 US ISM Non-Manufacturing PMI for June

    PRICES AT 0044 GMT
 Metal            Last      Change   Pct chg
                                             
 Spot gold         1170.61     3.17      0.27
 Spot silver         15.66    -0.01     -0.06
 Spot platinum     1070.74    -9.11     -0.84
 Spot palladium     677.72    -1.93     -0.28
 Comex gold           1170      6.5      0.56
 Comex silver        15.63    0.068      0.44
 Euro               1.1021                   
 DXY                96.435                   
                                             
 COMEX gold and silver contracts show the
 most active months
 

 (Reporting by A. Ananthalakshmi; Editing by Michael Perry)

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