logo-loader

Gold unsettled ahead of Jackson Hole meeting

Gold was under pressure ahead of the meeting of the world’s central bankers at Jackson Hole in Wyoming.

picture of gold being poured
Gold has slipped ahead of central bank meeting

Gold was under pressure ahead of the meeting of the world’s central bankers at Jackson Hole in Wyoming.

Traders fear Federal Reserve chair Janet Yellen may use the meeting to indicate that US interest rates are going up.

Comments from vice-chairman of the Federal Reserve, Stanley Fischer, that US GDP growth would pick up in coming quarters added to the unease among gold bugs.

Precious metals tend to move in the opposite direction to US interest rates and “The market appears to be interpreting yesterday’s speech by Fed Vice Chairman Stanley Fischer as ‘hawkish’” said Commerzbank.

“According to the Fed Fund Futures, the probability of a US Federal Reserve rate hike this year is now at over 60% again,” it added.

The firm US dollar, rising bond yields and significantly higher rate hike expectations in the US are also weighing on silver, said the broker.

At US$18.91 per oz, the price is close to a seven-week low with the gold/silver ratio back above 70 again for the first time since the end of June.

A couple of hours in to US trading, spot gold was US$3 lower at US$1,338 having perked up a little since the start of the day.

Silver was 2% lower at US$18.91, while platinum shed US$6 to US$1,104. 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Arcadia Biosciences makes major progress on its hemp venture...

Arcadia Biosciences Inc (NASDAQ:RKDA) CEO Raj Ketkar tells Proactive the California-based company expects to “significantly scale revenues in 2020” as it reported financial and business results for the second quarter and first half of 2019. Ketkar says the agricultural innovation company made...

2 days, 4 hours ago

2 min read