Gold prices gain in Asia as investors await more Greece debt news

Investing.com - Gold gained in early Asia on Thursday as investors braced for the possibility that talks with Greece over its debt bailout would stall or even collapse.

Eurozone finance ministers ended their Wednesday meeting early as no real progress was made between Greece and its creditors ahead of the Eurogroup.

Finland's Finance Minister Alex Stubb, "that is it for tonight."

"The Eurogroup will continue again on Thursday at 13:00 CET," Stubb wrote on his Twitter (NYSE:TWTR) account.

European Commission President Jean-Claude Juncker has called another meeting with Greek Prime Minister Alexis Tsipras on Wednesday evening in Europe. The heads of the creditors, the Economy Commissioners as well as Eurogroup President Jeroen Dijsselbloem are also invited to participate.

The meeting is seen as another effort on behalf of the commission to bridge the gaps between the two sides that revolve around pensions and taxes.

On the Comex division of the New York Mercantile Exchange, gold for August delivery rose 0.14% to $1,174.60 a troy ounce.

Silver for July delivery gained 0.03% to $15.858 an ounce.

Copper for July delivery eased 0.05% to $2.623 a pound.

Overnight, 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.

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.

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.

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.