US employment data released on Friday, as well as an increase in the expected level of the Fed Funds Rate, has taken effect on the volatile price of gold.
Expected level of Jan 2018 Fed Funds futures rose by 0.09 percent last Friday after strong employment data boosted the markets. Positive data of this kind has led to increased speculation over when the Fed will make a decision to hike rates -affecting the highly sensitive gold market accordingly. This latest piece of data has pushed gold up towards the $1350s.
New York Fed President William Dudley encouraged sentiment yesterday by saying a September rate hike was “possible”, with Atlanta Fed President Dennis Lockhart admitting the US could see two rate hikes before the end of 2016.
17/08/2016
