Gold's one day jump ends

13 October, 2016

The gold price has come under pressure today, giving up yesterday’s gains as a US Federal Reserve board member signaled that a rate hike was just around the corner.

Federal Reserve of Chicago PresidentВ Charles Evans noted in a speech in SydneyВ on Tuesday that the U.S. economy is moving forward and that a December rate hike “could be fine.” sparking a jump in the US dollar and a selloff in gold.

The market now anticipates a greater than 70 percent chance that the US central bank will lift rates before the end of the year up from 50 percent less than a month ago.

Evans has just been one of a number of Fed board members that have called for increasing monetary policy in the US which has kept gold under pressure and contributed to the more than 5 percent fall over the last month,

“Open interest has declined because of long positions liquidating last week on the big move down, and they haven’t come back into the market,” Bob Haberkorn, a senior market strategist at RJO Futures in Chicago, said in an e-mail.

“What’s keeping gold lower for the most part have been comments since last week by various Fed members on a December rate hike, like what we heard from Evans last night.” he added.


Source link  
Stagflation a threat to US dollar

The US dollar jumped suddenly after yesterday’s release of better than expected inflation data and then suddenly reversed into negative territory which...

Gold made a run for the $1365 mark

If we look at the arrow on the weekly gold price chart we can see that a resistance point that was first encountered in around august of last year...

Gold awaits direction of Stockmarket

The gold price has remained in a tight range over the last 3 trading sessions as equity markets in the US continue to swing wildly and are now down...


US dollar in for a tough year

The US dollar finished off 2017 mostly weaker against the major currencies despite 3 rate hikes from the US Federal Reserve and although...

RBA misleads investors on AUD

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday...

Brexit doubts pressure pound

The British pound has enjoyed a good run against its US counterpart ever since rumors spread that the EU and the UK were close to reaching a deal...


Gold steady ahead of key news

The gold price is trading slightly higher today as the market awaits the senate testimony later today from Jeremy Powell who is Donald...

Gold looks to go past $1300

The gold price remains well supported today after yesterday’s stellar gains on the back of a less than convincing speech from The US Federal Reserve...

Gold remains supported

After falling sharply on Monday, the gold price has stabilized over the last 2 days and it looks as if for now, the precious metal has found strong...

  


Share: