Market participants on gold market focus on Yellen testimony and Greek vote

Gold's price surge was attributable to poorer than expected US retail sales figures in June. Gold is trading at $1,155 per troy ounce again this morning after having briefly climbed to $1,160 yesterday.

If the next economic data were likewise to prove weaker than anticipated, the US Federal Reserve might wait longer before beginning its interest rate hikes. So far, Fed Chair Yellen has talked about the Fed raising interest rates "later this year". 

Yellen will be giving her half-yearly testimony before the US House of Representatives today and before the Senate tomorrow. Market participants are hoping that this will give some indication of when the Fed will finally be hiking interest rates. The Greek parliament will be voting today on the proposed reforms which are necessary for Greece to receive a third bailout package in the foreseeable future. 

Approval is thought to be certain due to votes from the opposition there are numerous dissenters in the party of Prime Minister Tsipras and his coalition partner. Assuming this is the case, the ECB could decide at its meeting tomorrow to increase the ELA loans and thus enable Greek banks to reopen. 

Voting will then take place in the parliaments of a number of European creditor countries in the coming days, paving the way for negotiations on new financial aid. In the short term this could further reduce the attractiveness of gold as a safe haven, says Commerzbank.