Gold to remain under pressure until Fed rate decision

13 September, 2016

Gold to remain under pressure until Fed rate decision

The gold price is down for a fourth consecutive day today as the market awaits another speech by a Fed board member which may shed more light on whether there will be a rate hike in America next week.

Fed board member Lael Brainard is due to give a speech later today with volatility expected in the gold price following on from board member Denis Lockard’s speech on Friday.

ВВ “Brainard is among the few Federal Open Market Committee members that have not already expressed their view on the outlook for policy ahead of the September meeting” said Charalambos Pissouros, senior analyst with IronFX Global.

“As such, we believe that her speech has the potential to influence market expectations for a hike” in 2016” he added.

With only eight days to go until the Fed rate decision gold and other metals are likely to see more weakness as chances of a rate hike grow by the day,

"A pick-up in focus on the Fed speakers certainly means that every word will be closely analyzed. It is going to create a little bit of volatility going forward," said ANZ analyst Daniel Hynes.

"Expectations are increasing about a potential hike in rates this September. That alone will see investors reduce their long positions over the coming days." he added.

ВВ Today also has some added significance as it is the last day Fed officials can speak before they go into their quiet period.ВВ 


Source link  
Gold tanks on French election

The gold price has pulled back sharply today after yesterday's French election results which saw both...

Pound surges on election news

The British pound jumped to a 4 month high...

Pound bounces on strong data

The British pound is trading higher today after a significant rise in the services sector...


RBA leaves rates on hold

The Australian dollar is sharply lower today after a monetary speech earlier today from the RBA...

US drillers enjoy higher oil prices

In a surprise move pulled off late last year, it has been revealed that U.S. drillers hedged their bets last year against falling oil prices, which is likely...

Pound hit 7 week high

British pound hit a 7-week high in today’s trading against its US counterpart over uncertainties about Donald Trumps policies after his attempt...


Oil poised to go lower

The oil price is hovering near a 4 month low today after data out shows production cuts from OPEC are failing to counter the effects of increased shale...

Gold continues to rebound

Gold is on target to rack up its 6th straight day of gains on the back of doubts over US President...

Gold rally set to continue

The gold price continues to climb today, racking up its 4th straight day of gains which started last Wednesday after a dovish speech from the US Federal Reserve. At 6.00pm (GMT) gold was trading at $1,234 up from $1,228 at close of trade on Friday...

  


Share: