Investing.com - Gold prices fell as investors digested regional prices data out of China as well as steps to support stock markets there, jobs data from Australia and the ongoing efforts to bailout Greece ahead of a Sunday deadline.
The People's Bank of China on Thursday provided liquidity to China Securities Finance Corp via re-lending at its request, state-run Xinhua News Agency reported.
The PBOC will also let the CSFC issue financial bonds, including short-term commercial paper in the interbank market, and pledged to continue to provide liquidity support to CSFC via various channels.
The Shanghai Composite index gained 2.35% in morning trade.
Eurogroup President and European Stability Mechanism Chairman Jeroen Dijsselbloem sent a letter to the top euro zone economic officials asking them to assess Greece's request for a stability loan.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.52% to $1,157.40 a troy ounce.
Silver for September delivery eased 0.65% to $15.065 an ounce, while copper futures jumped 1.27% to $2.520 a pound.
Also in China, June CPI rose 1.4%, above the 1.3% gain seen, while PPI fell 4.8%, more than the drop of 4.5% expected, indicating an easing in deflationary pressure on the consumer figure, but producer prices are at a four-month low and extend the run of negative growth to a record 40 months, highlighting the problems of widespread industrial overcapacity.
In Australia, the June labour force survey showed a gain of 7,300 jobs, well above a fall of 5,000 jobs month-on-month expected after a strong 42,000 rise in May. The unemployment rate held steady at 6.0% but the labor participation rate rose to 64.8% from 64.7%.
Overnight, gold rallied sharply ahead of the release of the Federal Open Market Committee's June meeting on Wednesday afternoon, as widespread crises in China and Greece remained in focus.
In Athens, newly appointed Greek finance minister Euclid Tsakalotos outlined a comprehensive set of reforms the nation would adhere to in exchange for a three-year bailout through the European Stability Mechanism. The proposal includes: tax-related reforms, pension-related measures and potential debt relief. Tsakalotos is set to explain the proposal in greater detail on Thursday.
"Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term," Tsakalotos said.
Tsakalotos indicated that the release will provide officials from the European Central Bank, International Monetary Fund and European Commission with ample time to review the proposal before Sunday's emergency summit between Greece and its creditors in Brussels. While the meeting is viewed by many European officials as Greece's last opportunity to remain in the euro, it will come eight days before the cash-strapped nation owes a loan repayment of €3.5 billion to the ECB.
"The stark reality is that we have only five days left," European Council president Donald Tusk said in a news conference on Tuesday night. "Until now I have avoided talking about deadlines, but tonight I have to say loud and clear that the final deadline ends this week."
In China on Wednesday, the Shanghai Composite Index tumbled 5.9% to 3,507.19, as trading was halted on more than 1,330 companies amid further efforts from the People's Bank of China to stimulate Chinese equities markets. Over the last month, Chinese stocks have plunged roughly 30% amid the slowest economic growth in the nation in more than a decade.
China is the world's largest producer of gold and the second-largest consumer behind India and the world's top importer of copper.