Investing.com -- Gold futures fell to its lowest level in more than two weeks extending losses from earlier this week amid a relatively flat dollar, stalled progress in Greek Debt talks and revised estimates of contractions in the U.S. economy in the first quarter.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 3.60 or 0.31% to 1,173.00 a troy ounce. Gold closed down for the fifth consecutive session, falling to its lowest closing level since June 5 when it dipped below $1,170.
Gold futures likely gained support at 1,162.10, the low from June 5 and was met with resistance at 1,190.20, the high from June 15.
While the U.S. Department of Commerce's Bureau of Economic Analysis upgraded its estimate of GDP growth for the first quarter from an initial projection of negative 0.7%, its second revision released on Wednesday still estimated negative growth at an annual rate of 0.2%. The decrease in real GDP in the first quarter primarily reflected negative contributions from exports, nonresidential fixed investment, and state and local government spending, the BEA said in a statement. The downside pressures were partially offset by positive contributions from Price Consumption Expenditures, private inventory investment, and residential fixed investment.
GDP growth is typically slow in the first quarter due to seasonal factors. In the opening quarter of 2014, the U.S. economy experienced even sharper losses as GDP declined by more than 2%. Advanced estimates for second quarter GDP will be released on July, where analysts anticipate growth of 2-3% during the period.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, inched down 0.04 to 95.56. A day earlier the dollar enjoyed one of its strongest sessions of the year spiking more than 1.2%, as the two sides in longstanding Greek talks appeared to be moving closer to a deal that could unlock critical aid deemed necessary for Greece to stave off bankruptcy.
Any optimism for a Greek deal on Wednesday, however, quickly faded amid growing contention between the International Monetary Fund and the cash-strapped nation. A five-page document leaked by the IMF outlined broad proposals for Athens to enact sweeping pension reforms and measures aimed at generating additional revenue from Value-Added Taxes.
Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.
Before arriving in Brussels for high-level negotiations with officials from the European Central Bank and the IMF, Greece prime minister Alexis Tsipras criticized international creditors for its perceived unfair treatment of the Mediterranean state in comparison with other European nations under economic duress in the recent past.
"The repeated rejection of equivalent measures by certain institutions never occurred before-neither in Ireland nor Portugal," Tsipras wrote on his Twitter (NYSE:TWTR) account. "This odd stance seems to indicate that either there is no interest in an agreement or that special interests are being backed."
Greece is running short on time before a bundled payment of EUR 1.5 billion is due to the IMF on June 30. It is feared Tsipras' nation could leave the euro zone if it defaults on its sovereign debt, triggering potential contagion throughout the area. Gold serves as a safe-haven for investors in periods of severe economic instability.
Silver for July delivery gained 0.115 or 0.73% to 15.848 an ounce.
Copper for July delivery rose 0.012 or 0.45% to 2.625 a pound.