Gold Traders Waiting On Clarity From US Fed

Gold Traders Waiting On Clarity From US Fed

$GLD, $SLV

This is shortened trading week, due to Labor Day, and precious metals investors must wait 1 more week before the Fed’s FOMC meeting on 16-17 September.

While global market uncertainty could benefit Gold prices near-term, an impending rate hike continues to weigh on the market.

Dec Gold futures ended a 2nd week running in the Red, but did hold Key support levels, closing Friday’s session at 1,121.40 oz, down almost 1% on the week.

Silver prices performed slightly better this week, despite also ending its 2nd straight week in the Red.

Dec Silver futures ended Friday’s session at 14.544 oz,  flat on the week.

Now, fed funds futures are pricing a 60% chance of a rate hike, which is high enough to keep participants out of the Gold market near-term.

The Gold market does not want to price out a rate hike in Y 2015, as a result expect to see weaker prices.

Even if raise is not in September, there are 2 more monetary policy meetings left in Y 2015, October and December.

Some analysts continue to see Gold struggling in the face of a Fed rate rise, other are focused on the precious Yellow metal’s potential. With little economic data to be released this week, many professionals are looking for outside markets to predict Gold’s next move.

Analysts note that the fact that Gold was able to hold support above 1,117 oz may be positive for prices.

In US economic data

The only report to garner market attention this week will be inflation data with the release August’s Produce Price Index (PPI).

Have a terrific week.

HeffX-LTN

Paul Ebeling

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