Gold price slips on Greek deal
Sydney-Australia (July 14) Gold prices were lower on the London spot market on Tuesday, on the back of the Greek debt deal and a firmer dollar.
Spot gold prices were down 0.3 per cent at $US1,153.99 a troy ounce in morning European trading.
"Gold and silver prices are weaker on the back of the Greek deal and the stronger dollar is no doubt prompting that," said William Adams, head of research at Fastmarkets.
Furthermore, global risk reduced following a deal by Greece with its creditors for a third bailout. As gold is considered a traditional safe-haven in times of heightened instability, this chipped away at demand for the metal and deflated prices.
Nevertheless, Commerzbank sees uncertainty surrounding Greek banks remaining, which could be bullish for the yellow metal.
"Banks in Greece are remaining closed for the time being, and chaos cannot be ruled out once they reopen... this should lend support to gold," analysts at the bank said.
However, Phillip Futures believes economic data out of the US will have a stronger hand in sending prices lower.
"If US retail sales prove better-than-expected tonight, we may see gold prices falling to the support of $US1,145/oz," Phillip Futures investment analyst Howie Lee said.
More broadly, bearish sentiment is weighing on the yellow metal as investor interest ebbs, said David Govett, head of precious metals at Marex Spectron.
"Precious [metals] will come back into vogue at some point, but I think we are in for a long summer lull," said Mr Govett.
Among the other precious metals, spot silver was down 0.9 per cent at $US15.364 an ounce and spot platinum was down 0.4 per cent at $US1,028 an ounce. While spot palladium was up 0.4 per cent at $US658.77 an ounce.