Vista Brokers: Greece Weakened Precarious Position of Gold
During the Asian trading session on Thursday, price of gold futures continued to reduce. Vista Brokers analysts say that the already precarious position of gold was weakened with the fact that the Greek parliament has passed first needed bills required under terms of a three-year bailout program. On the Comex, gold futures for August delivery have fallen by 0.08% to $ 1,146.50 per troy ounce. Silver for September delivery has fallen in price by 0.27% to $ 15,008 per ounce. Copper continues to rise after yesterday's strong statistics from China - September futures have increased by 0.07% to $ 2.516 per pound.
Many doubted that Prime Minister Alexis Tsipras can persuade parliament to pass unpopular reforms, against which the Greek people had voted. However, necessary measures have been taken with 229 yes, 64 no and 6 present, and now probably Athens will receive the first tranche from creditors. Greece needs the foreign aid desperately to resume the work of banks and to implement overdue payments. It is noteworthy that the "native" left-wing forces did not support their leader that may indicate that the split in parliament is worsening. In his defense, Tsipras said that other than to accept the creditors' plan, he had only two choices - a chaotic default and the voluntary exit from the euro zone.
So, Greece is likely to receive assistance from the EU, the ECB and the IMF, at least the first part of it, which undermines the position of gold as a safe-haven asset to which market participants are turning in unstable times. In addition, the pressure on the metal has the US economic recovery and the high probability that the Fed will raise the interest rate before the end of the year.
So, after a speech of the Federal Reserve head Janet Yellen yesterday gold has collapsed to a minimum of 2015. The head of the US central bank has confirmed that the regulator intends to raise rates later this year, provided that the statistics continue to show improvement in the economic situation.
During the Asian trading session on Thursday, price of gold futures continued to reduce. Vista Brokers analysts say that the already precarious position of gold was weakened with the fact that the Greek parliament has passed first needed bills required under terms of a three-year bailout program. On the Comex, gold futures for August delivery have fallen by 0.08% to $ 1,146.50 per troy ounce. Silver for September delivery has fallen in price by 0.27% to $ 15,008 per ounce. Copper continues to rise after yesterday's strong statistics from China - September futures have increased by 0.07% to $ 2.516 per pound.
Many doubted that Prime Minister Alexis Tsipras can persuade parliament to pass unpopular reforms, against which the Greek people had voted. However, necessary measures have been taken with 229 yes, 64 no and 6 present, and now probably Athens will receive the first tranche from creditors. Greece needs the foreign aid desperately to resume the work of banks and to implement overdue payments. It is noteworthy that the "native" left-wing forces did not support their leader that may indicate that the split in parliament is worsening. In his defense, Tsipras said that other than to accept the creditors' plan, he had only two choices - a chaotic default and the voluntary exit from the euro zone.
So, Greece is likely to receive assistance from the EU, the ECB and the IMF, at least the first part of it, which undermines the position of gold as a safe-haven asset to which market participants are turning in unstable times. In addition, the pressure on the metal has the US economic recovery and the high probability that the Fed will raise the interest rate before the end of the year.
So, after a speech of the Federal Reserve head Janet Yellen yesterday gold has collapsed to a minimum of 2015. The head of the US central bank has confirmed that the regulator intends to raise rates later this year, provided that the statistics continue to show improvement in the economic situation.
