Gold closes lower for third straight session
Bullion prices ended lower at Comex on Tuesday, 15 July 2014. Gold prices reversed earlier gains to close lower for a third session on Tuesday in the wake of dovish comments from Federal Reserve Chairwoman Janet Yellen. A firmer U.S. dollar and Nymex crude oil futures dropping to a two-month low, below $100 a barrel, were bearish "outside markets" on Tuesday that helped to pressure gold.
Gold for August delivery slid $9.60 to $1,297.10 an ounce. On Monday, prices took their hardest hit of the year, dropping 2.3% amid an investor rush into equities.
September silver also slipped, edging down 3 cents to $20.89 an ounce.
Federal Reserve Chair Janet Yellen's testimony to the U.S. Senate coincided with gold's late-morning sell off. However, her remarks appeared not to have prompted the price pressure in gold. Yellen, who was testifying in front of the Senate Banking Committee, said hiking interest rates is not a panacea for easing financial stability risks.
The lack of fresh concerns about the geopolitical front have led to better risk appetite in the market place early this week. However, four situations remain simmering on low heat on the back burner of the market place: the European Union sovereign debt crisis, the Iraqi civil war, the latest flare-up between Israel and Hamas, and the Russia-Ukraine tensions.
In overnight news there was yet another downbeat economic report coming out of the European Union. The German ZEW economic expectations index came in at 27.1 in July versus 29.8 in June. The forecast was for a reading of 28.0. On Monday the International Monetary Fund (IMF) urged the European Central Bank to implement quantitative easing of its monetary policy, to help spur economic growth and to ward of deflationary price pressures.
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