The gold price hovered around 1 month lows today as the market awaits a much anticipated speech from US Federal Reserve Janet Yellen tomorrow for signs on the timing of an interest rate hike.
The precious metal has lost around $30 in the previous 4 trading sessions but some see that coming to a halt tomorrow by predicting that Yellen’s tone may lean towards the dovish side which may create a bounce in the gold price,
."I think the market will continue to sell off until that meeting, where she'll most likely disappoint" noted RJO Futures senior market strategist Phillip Streible
"Then I think the focus will shift back to negative global interest rates with $12 billion trading at negative interest rates here in government debt, so I think gold prices will push back up from there." he added.
Adding more intensity to tomorrow’s speech was data out of the US earlier today which came in above expectations and may give Yellen something to think about.
Durable goods orders for last month hit the market at 4.4 percent against analysts’ expectations for a number of 3.5 percent while the Jobless claims figure also beat estimates coming in at 261,000 against a consensus of 265,000 which may set the stage for another strong non-farm payrolls figure next week.