Investing.com -- Gold futures inched down on Wednesday extending losses from the previous two sessions, ahead of a monthly U.S. employment report and a highly anticipated Greek referendum over the weekend.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.90 or 0.08% to 1,170.90 a troy ounce, moving lower for the third consecutive session. Gold futures traded in a tight range during the first day of trading this month between a low of 1,166.90 and a peak of 1,174.40.
Since closing at 1,202 an ounce on June 18, gold futures have declined in nine of its last 11 sessions.
Gold likely gained support at 1,162.10 the low from June 5 and was met with resistance at 1,200.80, the high from June 22.
When the U.S. Department of Labor's Bureau of Labor Statistics releases its monthly jobs report on Thursday, economists expect a consensus rise of 230,000 non-farm payrolls for the month of June. In a robust report in May, non-farm payrolls surged by 280,000, amid significant increases in professional business services, retail trade and trade and transportation.
Analysts also expect the unemployment rate to tick down 0.1% to 5.4% after edging up to 5.5% in May. In terms of hourly wages, economists anticipate an uptick of 0.2% in June building on a 0.3% surge a month earlier. A strong employment report could appease the hawks at the Federal Reserve, who are in favor of a September interest rate hike. Following last month's Federal Open Market Committee meeting, Fed chair Janet Yellen indicated that the U.S. Central Bank would like to see continued improvement in wage and inflation growth before it raises its benchmark Federal Funds Rate for the first time in nearly a decade.
Gold, which is not attached to dividends or interest rates, struggles to compete with high-yield bearing assets in periods of rising rates. The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, rose 0.57% to 96.30. The dollar has appreciated sharply in three of the last four sessions as it nears a three-week high.
Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.
In Athens, Greece prime minister Alexis Tsipras insisted that a no vote by Greek citizens in Sunday's referendum does not signal a departure from the euro zone, rather a denunciation of strict austerity measures its international creditors have demanded in return for cash and restructuring of its debt.
"No does not mean breaking with Europe, but returning to the Europe of values," Tsipras said in the address to the nation. "No means strong pressure a socially just agreement that puts burden on those who can shoulder it and not on pensioners and workers once again."
A day earlier as Greece's second bailout expired, Tsipras' government submitted a revised proposal, which included: pension, tax and labor reforms, as well as enhanced fiscal structural measures. A bevy of Greece's international creditors remain adamant that a No vote on Sunday will provide an indication of the Mediterranean state's intention of leaving the euro zone.
Silver for September delivery gained 0.021 or 0.13% to 15.602 an ounce.
Copper for September delivery rose 0.015 or 0.57% to 2.630 a pound.