Greece, Iran Nuke Deal Pressure Gold
Today’s Spotlight Market
Gold prices were under pressure after Eurozone leaders agreed to a rescue deal for Greece.? With the country certain to stay in the EU and the currency union, some of the fear premium has been sucked from the market.? As always, nothing is ever completely certain with regards to Greece.? The rescue package hinges on the Greek government pushing through some tough austerity measures and economic overhauls in the coming days.? With the volatile nature of Greek politics, there is no guarantee the government will be able to push through the measures.
Fundamentals
With Greece being moved to the back burner (for now), traders are left to focus on economic data, ECB easing and demand.? Economic data from the US and Europe has not exactly been anything to brag about.? June?s non-farm payroll data was disappointing, and there has not been any positive data to cleanse the market?s palette from the weak jobs report.? In Germany, the ZEW expectations report came in at 29.7 in July, a 2 point decline from June.? German sentiment has been steadily sliding, but not nose-diving.? It could be due, in part, to German views on Greece and the series of bailouts.? UK PPI came in flat, lessening inflation demand for metal within the UK.? In short, economic data has been weak, but not weak enough to spur defensive Gold buying.? The Iranian nuclear accord has put some additional pressure on Crude Oil prices that could also trickle into the Gold market.
Technical Notes? -? View Today’s Chart
Turning to the chart, we see the August Gold contract trading below minor support at 1175 and prices are now approaching the 1142.60 level, which may be seen as more significant support.? If prices are unable to hold 1142.60, this could trigger additional technical selling.
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