TOKYO: Gold rose in Asia on Thursday with investors focused on the scope for continued easy policy in Japan. In Japan, retail sales rose 5.0% year-on-year in April, the first rise in four months. The data comes after the government and Bank of Japan earlier this month revised up their assessments of consumption after a long slump caused by the April 2014 tax hike.
In Australia, first quarter total capex fell 4.4% quarter-on-quarter, likely disappointing policy makers who view investment plans a key for the rate outlook. On the Comex division of the New York Mercantile Exchange, gold for August delivery rose 0.18% to $1,188.60 a troy ounce
Silver for July delivery gained 0.41% to 16.715 a troy ounce.Copper for July delivery increased 0.04% to $2.767 a pound. Overnight, gold futures edged down on Wednesday extending losses from a massive sell-off one session earlier, amid positive developments in negotiations between Greece and its creditors, as well as the continued appreciation of the dollar.
In Brussels, Greek prime minister Alexis Tsipras said his nation is close to reaching an agreement with its troika of creditors deemed necessary to unlock critical aid that could allow it to stave off bankruptcy. The two sides have begun the process of drafting a technical level agreement on a comprehensive bailout package, according to Athens officials.
“We have made many steps, we are on the final stretch towards a positive deal,” Tsipras told reporters. A deal in the four-month stalemate could free up the remaining €7.2 billion of a 240 billion bailout euro zone creditors have provided to the cash-strapped Mediterranean nation.
Greece is in desperate need of the stimulus package as it reportedly grows closer to running out of cash by the day. Before the deadline to reach an agreement expires at the end of June, Greece owes approximately €1.6 billion to the International Monetary Fund over several payments due next month.
Greek officials believe a deal can be reached without making concessions for pension and wage cuts, according to multiple reports. The austerity measures, however, were presumed to be a prerequisite for reaching any accord. Officials from the European Commission, meanwhile, painted a different picture on the developments of negotiations.
“We are working very intensively to ensure a staff-level agreement,” European Commission vice president Valdis Dombrovskis told reporters. “We’re still not there yet.”
