Gold to focus on Iran talks, Janet Yellen testimony this week - Analysts

Analysts at Mitsubishi consider that this week gold traders should closely watch the Iran nuclear talks and Fed Chairwoman Janet Yellen's testimony which could move gold in either direction.

Gold has not benefitted from safe-haven demand amid the Greek turmoils, as many investors were expecting a last-minute deal, which was concluded today, giving preference to riskier assets like stocks.

China's equity market collapse neither gave a boost to gold prices.

Mitsubishi says a downside factor for the yellow metal has been liquidations as investors sought to raise cash to meet margin calls on equity losses.

“A potential nuclear deal with Iran could see more oil released onto the world market – an essentially deflationary, bearish scenario for gold and its sister metals. On the other hand, Fed Chair Yellen’s congressional testimonies may emphasise - as last week’s June minutes did - the need for the FOMC to wait until there is more evidence of strengthening U.S. economic growth before rate rises are begun; this lower-for-longer stance should benefit precious metals.”