Gold price flat as traders wait on Greek Parliament, Yellen testimony
London (July 15) Gold futures on Wednesday showed little change after a four-day losing streak, as analysts warned that a potential resolution to the Greek crisis could keep a lid on the yellow metal.
Gold for August delivery GCQ5, +0.02% was last up by 60 cents, or less than 0.1%, to $1,154.10 an ounce, while September silver SIU5, -0.46% gave up 4 cents, or 0.2%, to $15.28 an ounce.
On Tuesday, gold futures settled lower as disappointing U.S. retail-sales data failed to keep prices from extending their losing streak to a fourth straight session.
Wednesday is expected to provide plenty of headlines that could move gold and other markets, with the Greek Parliament to decide whether to adopt a raft of unpopular and stringent reform measures demanded by the country’s international creditors.
“Approval is thought to be certain thanks to votes from the opposition–there are numerous dissenters in the party of Prime Minister Tsipras and his coalition partner,” said commodity analysts at Commerzbank in a note Wednesday. They added that could lead to the European Central Bank increasing key loans, Greek banks reopening and negotiations on new financial aid.
“In the short term this could further reduce the attractiveness of gold as a safe haven,” the Commerzbank analysts said.
Read more: Wall Street is in for a rollercoaster ride of a session Wednesday
Federal Reserve Chairwoman Janet Yellen is scheduled to speak Wednesday morning before U.S. lawmakers about the central bank’s economic outlook.