Gold Weaker on Better Risk Appetite, Bearish Technicals; Yellen on Deck

By Paul Ploumis 15 Jul 2015 Last updated at 06:16:17 GMT

(Kitco News) - Gold prices ended the U.S. day session modestly lower Tuesday. Buying interest in precious metals was limited due to the better investor/trader risk appetite that has been in the market place the past few days. The technical charts are also fully bearish for gold and silver markets. August Comex gold was last down $2.10 at $1,153.30 an ounce. September Comex silver was last down $0.142 at $15.315 an ounce.

Gold got a mild, brief lift in morning dealings Tuesday when the U.S. retail sales report for June came in at down 0.3%, missing expectations were for a 0.2% rise. Sales in May were of up 1.2%. The downbeat report only gave the gold market bulls a temporary boost as prices soon drifted back to steady or just below unchanged.

An agreement has been reached between Iran and the U.S., regarding Iran’s nuclear program and ending economic sanctions against Iran, reports said Monday. This is one more bearish element for the already beaten-down crude oil market. Prices are closing in on the $50.00-a-barrel mark. This news also significantly ratchets down the specter of Iran becoming a geopolitical hotspot in the coming months, or longer—if the deal holds up.

Greece and the European Union/International Monetary Fund on Monday agreed on a debt restructuring and financial aid deal. However, the deal, which contains harsh austerity programs for Greece, must be passed by the Greek parliament, which votes on the matter Wednesday.  If the Greek parliament agrees to this week’s deal, then the Greek debt crisis will move to the back burner of the market place, for now.

Traders and investors are looking ahead to Wednesday, when Federal Reserve Chair Janet Yellen makes her semi-annual appearance before the U.S. House, to discuss monetary policy with lawmakers. Yellen speaks to the Senate on Thursday.

The London P.M. gold fix is $1,157.40 versus the previous A.M. fix of $1,153.20.

Courtesy: Kitco News