Gold prices were flat in the Asian trading hours on Wednesday despite bearish sentiment over a stronger dollar and Greece deals.
Spot gold price was last at $1,155.1/1,155.9 per ounce, unchanged from yesterday’s close.
“Gold faces a generally negative climate. The Greek deal reduced any ‘safe-haven’ inspired buying that might have been going to bullion,” said HSBC in a report. “Gold was also burdened by the apparent lack of physical buyers and investors stepping forward. So while the selling pressure was not heavy, given the lack of buyers, it was sufficient to undermine prices.”
Iran and US-led six nations have reached a historic deal after nearly two years of negotiation, aiming at reining in Iran’s nuclear program.
“The Iran nuclear deal and a reduction in geopolitical tensions, as reported by the Financial Times, also weighed on gold, but was a secondary factor, in our view,” said HSBC.
Overnight, US core retail sales in June were down 0.1 percent on May, missing the predicted 0.7 percent and retail sales at -0.3 percent missed the forecast 0.4 percent. The NFIB small business index in June was at 94.1, far below the 98.6 estimate.
In data, US dollar index climbed 0.06 to 96.68 while the key Asia stock indexes were mixed – NIKKEI 225 rose 0.14 percent while Hang Seng Index and CSI300 Index slipped 0.41 percent and 2.43 percent respectively.
As for the other precious metals, spot silver increased $0.04 at $15.34/15.39 per ounce, platinum climbed $7 to $1,028/1,033 while palladium rose $8 to $657/662.
On the Shanghai Futures Exchange, gold for December delivery was down 0.3 yuan at 233.70 yuan per gram.
Today, market will be closely watching Eurogroup meetings, producer price index (PPI) in the US and Janet Yellen’s testimony for further signals as to future interest rates rise.
The post Gold prices flat, market awaits Yellen’s testimony appeared first on The Bullion Desk.
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