Gold Lower Ahead of Fed Chair Testimony

Gold slid below $1,200 an ounce on Tuesday after the euro zone’s finance ministers approved Greece’s new bailout plan, after Athens submitted reform proposals in the 11th hour.

Strength in the dollar ahead of Federal Reserve Chair Janet Yellen’s Senate testimony added to pressure on gold. Investors are awaiting her comments for clues on the timing of the first U.S. interest rate rise in nearly a decade, expected later this year.

Spot gold was down $4.20 at $1,196.60 an ounce, while U.S. gold futures for April delivery fell $5 an ounce to $1,195.80.

European shares rose on Tuesday and Greek shares outperformed after a list of proposed reforms submitted by Greece was received favorably by the European Commission.
The dollar rose on expectations that Yellen would keep the Federal Reserve nudging towards U.S. rate increases.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza