Gold was little changed on Monday morning in London ahead of a speech from a Fed official later today – the last before the September FOMC meeting.
– The spot gold price was last at $1,327.95/1,328.25 per ounce, little changed from Friday’s close. Trade has ranged from $1,324.95 to $1,330.25 so far.
– Gold weakened on Friday on a combination of higher dollar and bond yields after the head of the Boston Fed, Eric Rosengren, said a reasonable case can be made for a rate increase. Today, the focus will be on Fed Governor Lael Brainard’s speech, which was only scheduled on Friday.
“With a still relatively low likelihood of a September rate rise priced into the market, a hawkish speech… would very likely put bullion come under distinct selling pressure,” HSBC analyst James Steel said. “On the other hand, a markedly dovish speech may not be especially bullish for gold, as the market, at least up until Mr Rosengren’s speech, had ascribed a relatively low probability to a September rate rise.”
– Declining equities could offer some support to gold, market participants noted. Stock prices have tumbled across the board today, with investors increasingly convinced that the Federal Reserve will move soon, Swissquote noted.
– In the other precious metals, silver was little changed at $18.985/19.005 per ounce while platinum at $1,047/1,057 was down $8 and palladium slipped $3 at $666/674.
(Editing by Mark Shaw)
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Source: Bullion Desk News
