Gold edged higher on Friday morning in London while investors remain cautious ahead of Federal Reserve chair Janet Yellen’s speech at Jackson Hole tonight.
– The spot gold price was last at $1,324.15/1,324.60 per ounce, up $2.70 on Thursday’s close. Trade has ranged from $1,320.50 to $1,325.25 so far.
– “Although consensus expects a taster on where interest rates will be heading in the near future, any hint at a rise is likely to hit precious metals and emerging markets the hardest,” broker Triland noted.
– Various Fed members have issued relatively hawkish assessments of the US economy moving into this autumn despite poor consumer and retail data. Still, prediction markets see only one-in-five chance of a September move and do not widely anticipate an increase to the Federal Funds rate till 2017.
– “The odds that Yellen will give a hawkish signal for a September rate hike have increased and are now at pre-Brexit levels around 32 percent. It is clear that, once again Yellen will point out the better employment report, despite mixed and very volatile NFPs over the past few months,” Swissquote noted.
– In the other precious metals, silver was last at $18.620/18.670 per ounce, little changed from the previous close. But the PGMS are more sprightly – platinum at $1,078/1,085 was up $11.50 and palladium climbed $9.50 to $690/699.
(Editing by Mark Shaw)
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Source: Bullion Desk News
