By Paul Ploumis 17 Jul 2015 Last updated at 01:49:07 GMT
(Kitco News) - Gold futures prices closed the U.S. day session modestly lower and scored an eight-month low Thursday. Increased risk appetite in the market place this week is bearish for safe-haven gold. Also, the higher U.S. dollar index and weaker crude oil prices were bearish outside market forces working against the precious metals markets on this day. August Comex gold was last down $3.60 at $1,143.80 an ounce. September Comex silver was last down $0.078 at $14.97 an ounce.
The Greece parliament late Wednesday voted to accept harsh austerity measures in order to qualify for further financial aid from the International Monetary Fund and European Union. Most expected Greece’s parliament to vote yes on the new debt plan that was agreed upon earlier this week. The years-old Greek debt crisis has moved to the back burner of the market place, for now. The IMF is already questioning whether Greece can uphold some of the economic reforms laid out in the agreement.
European and U.S. stock markets were higher, partly on the Greece news, while their bond markets were mostly lower. The market place on Wednesday got a more hawkish tone from Federal Reserve Chair Janet Yellen in her testimony before a U.S. House of Representatives committee. Yellen said the Federal Reserve is on a path to raise U.S. interest rates yet this year, amid improving U.S. economic growth and despite global worries that include the Greece debt crisis and a shaky Chinese stock market. Yellen’s remarks helped to boost the U.S. dollar index to a six-week high today.
The European Central Bank helds its regular monetary policy meeting Thursday. The ECB did not change its monetary policy, as expected. However, the central bank provided details on Greece’s new bailout package.
The London P.M. gold fix is $1,144.40 versus the previous A.M. fix of $1,145.10.
Courtesy: Kitco News